,,ii #aaf? ,,congress #a/ ,session ,h4 ,r4 #aiid ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #c1 #bjai,receiv$ ,,an ,,act ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to enc\rage retirem5t sav+s1 & = o!r purposes4 #a4 ,%ort title1 etc 7a7 ,%ort title ,?is ,act may be cit$ z ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title1 etc4 ,title ,i--,exp&+ & pres]v+ retirem5t sav+s ,sec4 #aja4 ,multiple employ] plans2 pool$ employ] plans4 ,sec4 #ajb4 ,increase 9 #aj p]c5t cap = automatic enrollm5t safe h>bor aft] #a/ plan ye>4 ,sec4 #ajc4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus4 ,sec4 #ajd4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s4 ,sec4 #aje4 ,small employ] automatic enrollm5t cr$it4 ,sec4 #ajf4 ,c]ta9 taxable non-tuition fell[%ip & /ip5d paym5ts treat$ z comp5sation = ,,ira purposes4 ,sec4 #ajg4 ,repeal ( maximum age = traditional ,,ira contributions4 ,sec4 #ajh4 ,qualifi$ employ] plans prohibit$ f mak+ loans ?r\gh cr$it c>ds & o!r simil> arrangem5ts4 ,sec4 #aji4 ,portability ( lifetime income options4 ,sec4 #aaj4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans4 ,sec4 #aaa4 ,cl>ification ( retirem5t income acc\nt rules relat+ to *ur*-controll$ organizations4 ,sec4 #aab4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate4 ,sec4 #aac4 ,p5alty-free )drawals f retirem5t plans = individuals 9 case ( bir? ( *ild or adoption4 ,sec4 #aad4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions4 ,sec4 #aae4 ,special rules = m9imum fund+ /&>ds = community newspap] plans4 ,sec4 #aaf4 ,treat+ exclud$ difficulty ( c>e paym5ts z comp5sation = det]m9+ retirem5t contribution limitations4 ,title ,,ii--,adm9i/rative improvem5ts ,sec4 #bja4 ,plan adopt$ by fil+ due date = ye> may be treat$ z 9 effect z ( close ( ye>4 ,sec4 #bjb4 ,comb9$ annual report = gr\p ( plans4 ,sec4 #bjc4 ,disclosure reg>d+ lifetime income4 ,sec4 #bjd4 ,fiduci>y safe h>bor = selection ( lifetime income provid]4 ,sec4 #bje4 ,modification ( nondiscrim9ation rules to protect old]1 long] s]vice p>ticipants4 ,sec4 #bjf4 ,modification ( ,,pbgc premiums = ,,csec plans4 ,title ,,iii--,o!r b5efits ,sec4 #cja4 ,b5efits provid$ to volunte] firefight]s & em]g5cy m$ical respond]s4 ,sec4 #cjb4 ,expansion ( section #ebi plans4 ,title ,,iv--,rev5ue provisions ,sec4 #dja4 ,modification ( requir$ di/ribution rules = designat$ b5efici>ies4 ,sec4 #djb4 ,increase 9 p5alty = failure to file4 ,sec4 #djc4 ,increas$ p5alties = failure to file retirem5t plan returns4 ,sec4 #djd4 ,increase in=mation %>+ to adm9i/] excise taxes4 ,title ,v--,tax ,relief ,= ,c]ta9 ,*ildr5 ,sec4 #eja4 ,modification ( rules relat+ to ! taxation ( une>n$ income ( c]ta9 *ildr54 ,i ,exp&+ & pres]v+ retirem5t sav+s #aja4 ,multiple employ] plans2 pool$ employ] plans 7a7 ,qualification requirem5ts 7#a7 ,9 g5]al ,section #dac ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,application ( qualification requirem5ts = c]ta9 multiple employ] plans ) pool$ plan provid]s 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 if a def9$ contribution plan to :i* subsection 7c7 applies-- 7,a7 is ma9ta9$ by employ]s :i* h a common int]e/ o!r ?an hav+ adopt$ ! plan1 or 7,b7 9 ! case ( a plan n describ$ 9 subp>agraph 7,a71 has a pool$ plan provid]1 !n ! plan %all n be treat$ z fail+ to meet ! requirem5ts "u ?is title applicable to a plan describ$ 9 section #dja7;a7 or to a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh 7includ+ by reason ( subsection 7c7 !re(71 :i*ev] is applicable1 m]ely because "o or m employ]s ( employees cov]$ by ! plan fail to take su* actions z are requir$ ( su* employ]s = ! plan to meet su* requirem5ts4 7#b7 ,limitations 7,a7 ,9 g5]al ,p>agraph 7#a7 %all n apply to any plan unless ! t]ms ( ! plan provide t 9 ! case ( any employ] 9 ! plan fail+ to take ! actions describ$ 9 p>agraph 7#a7-- 7i7 ! assets ( ! plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees7 w be transf]r$ to a plan ma9ta9$ only by su* employ] 7or its successor71 to an eligible retirem5t plan z def9$ 9 section #djb7;c77#h77;,b7 = ea* individual ^: acc\nt is transf]r$1 or to any o!r arrangem5t t ! ,secret>y det]m9es is appropriate1 unless ! ,secret>y det]m9es x is 9 ! be/ int]e/s ( ! employees ( su* employ] 7& ! b5efici>ies ( su* employees7 to reta9 ! assets 9 ! plan1 & 7ii7 su* employ] 7& n ! plan ) respect to :i* ! failure occurr$ or any o!r employ] 9 su* plan7 %all1 except to ! ext5t provid$ by ! ,secret>y1 be liable = any liabilities ) respect to su* plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees74 7,b7 ,failures by pool$ plan provid]s ,if ! pool$ plan provid] ( a plan describ$ 9 p>agraph 7#a77;,b7 does n p]=m sub/antially all ( ! adm9i/rative duties :i* are requir$ ( ! provid] "u p>agraph 7#c77;,a77i7 = any plan ye>1 ! ,secret>y may provide t ! det]m9ation z to :e!r ! plan meets ! requirem5ts "u ?is title applicable to a plan describ$ 9 section #dja7;a7 or to a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh 7includ+ by reason ( subsection 7c7 !re(71 :i*ev] is applicable1 %all be made 9 ! same mann] z w\ld be made )\t reg>d to p>agraph 7#a74 7#c7 ,pool$ plan provid] 7,a7 ,9 g5]al ,= purposes ( ?is subsection1 ! t]m pool$ plan provid] means1 ) respect to any plan1 a p]son :o-- 7i7 is designat$ by ! t]ms ( ! plan z a nam$ fiduci>y 7)9 ! mean+ ( section #djb7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd71 z ! plan adm9i/rator1 & z ! p]son responsible to p]=m all adm9i/rative duties 7includ+ conduct+ prop] te/+ ) respect to ! plan & ! employees ( ea* employ] 9 ! plan7 :i* are reasonably necess>y to ensure t-- 7,i7 ! plan meets any requirem5t applicable "u ! ,employee ,retirem5t ,income ,security ,act ( #aigd or ?is title to a plan describ$ 9 section #dja7;a7 or to a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh 7includ+ by reason ( subsection 7c7 !re(71 :i*ev] is applicable1 & 7,,ii7 ea* employ] 9 ! plan takes su* actions z ! ,secret>y or su* p]son det]m9es are necess>y = ! plan to meet ! requirem5ts describ$ 9 subclause 7,i71 includ+ provid+ to su* p]son any disclosures or o!r in=mation :i* ! ,secret>y may require or :i* su* p]son o!rwise det]m9es are necess>y to adm9i/] ! plan or to all[ ! plan to meet su* requirem5ts1 7ii7 regi/]s z a pool$ plan provid] ) ! ,secret>y1 & provides su* o!r in=mation to ! ,secret>y z ! ,secret>y may require1 be=e beg9n+ op]ations z a pool$ plan provid]1 7iii7 ackn[l$ges 9 writ+ t su* p]son is a nam$ fiduci>y 7)9 ! mean+ ( section #djb7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd71 & ! plan adm9i/rator1 ) respect to ! plan1 & 7iv7 is responsible = ensur+ t all p]sons :o h&le assets (1 or :o are fiduci>ies (1 ! plan are bond$ 9 accordance ) section #dab ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 7,b7 ,audits1 exam9ations & inve/igations ,! ,secret>y may p]=m audits1 exam9ations1 & inve/igations ( pool$ plan provid]s z may be necess>y to en=ce & c>ry out ! purposes ( ?is subsection4 7,c7 ,aggregation rules ,= purposes ( ?is p>agraph1 9 det]m9+ :e!r a p]son meets ! requirem5ts ( ?is p>agraph to be a pool$ plan provid] ) respect to any plan1 all p]sons :o p]=m s]vices = ! plan & :o are treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad %all be treat$ z "o p]son4 7,d7 ,treatm5t ( employ]s z plan sponsors ,except ) respect to ! adm9i/rative duties ( ! pool$ plan provid] describ$ 9 subp>agraph 7,a77i71 ea* employ] 9 a plan :i* has a pool$ plan provid] %all be treat$ z ! plan sponsor ) respect to ! portion ( ! plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees74 7#d7 ,guidance 7,a7 ,9 g5]al ,! ,secret>y %all issue su* guidance z ! ,secret>y det]m9es appropriate to c>ry out ?is subsection1 includ+ guidance-- 7i7 to id5tify ! adm9i/rative duties & o!r actions requir$ to be p]=m$ by a pool$ plan provid] "u ?is subsection1 7ii7 :i* describes ! proc$ures to be tak5 to t]m9ate a plan :i* fails to meet ! requirem5ts to be a plan describ$ 9 p>agraph 7#a71 includ+ ! prop] treatm5t (1 & actions ne$$ to be tak5 by1 any employ] 9 ! plan & ! assets & liabilities ( ! plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees71 & 7iii7 id5tify+ appropriate cases to :i* ! rules ( p>agraph 7#b77;,a7 w apply to employ]s 9 ! plan fail+ to take ! actions describ$ 9 p>agraph 7#a74 ,! ,secret>y %all take into acc\nt "u clause 7iii7 :e!r ! failure ( an employ] or pool$ plan provid] to provide any disclosures or o!r in=mation1 or to take any o!r action1 necess>y to adm9i/] a plan or to all[ a plan to meet requirem5ts applicable to ! plan "u section #dja7;a7 or #djh1 :i*ev] is applicable1 has cont9u$ ov] a p]iod ( "t t demon/rates a lack ( commitm5t to compliance4 7,b7 ,good fai? compliance ) law be=e guidance ,an employ] or pool$ plan provid] %all n be treat$ z fail+ to meet a requirem5t ( guidance issu$ by ! ,secret>y "u ?is p>agraph if1 be=e ! issuance ( su* guidance1 ! employ] or pool$ plan provid] complies 9 good fai? ) a reasonable int]pretation ( ! provisions ( ?is subsection to :i* su* guidance relates4 7#e7 ,model plan ,! ,secret>y %all publi% model plan language :i* meets ! requirem5ts ( ?is subsection & ( p>agraphs 7#dc7 & 7#dd7 ( section #c ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd & :i* may be adopt$ 9 ord] = a plan to be treat$ z a plan describ$ 9 p>agraph 7#a77;,b74 4 7#b7 ,con=m+ am5dm5t ,section #dac7;c77#b7 ( su* ,code is am5d$ by /rik+ section #dja7;a7 & ins]t+ sections #dja7;a7 & #djh7;c74 7#c7 ,te*nical am5dm5t ,section #djh7;c7 ( su* ,code is am5d$ by ins]t+ aft] p>agraph 7#b7 ! foll[+ new p>agraph3 7#c7 ,!re is a sep>ate acc\nt+ = any int]e/ ( an employee or memb] 7or sp\se ( an employee or memb]7 9 a ,ro? ,,ira4 4 7b7 ,no common int]e/ requir$ = pool$ employ] plans ,section #c7b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is am5d$ by add+ at ! end ! foll[+3 7,c7 ,a pool$ employ] plan %all be treat$ z-- 7i7 a s+le employee p5sion b5efit plan or s+le p5sion plan2 & 7ii7 a plan to :i* section #baj7;a7 applies4 4 7c7 ,pool$ employ] plan & provid] def9$ 7#a7 ,9 g5]al ,section #c ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7 is am5d$ by add+ at ! end ! foll[+3 7#dc7 ,pool$ employ] plan 7,a7 ,9 g5]al ,! t]m pool$ employ] plan means a plan-- 7i7 :i* is an individual acc\nt plan e/abli%$ or ma9ta9$ = ! purpose ( provid+ b5efits to ! employees ( #b or m employ]s2 7ii7 :i* is a plan describ$ 9 section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf :i* includes a tru/ exempt f tax "u section #eja7;a7 ( su* ,code or a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh ( su* ,code 7includ+ by reason ( subsection 7c7 !re(72 & 7iii7 ! t]ms ( :i* meet ! requirem5ts ( subp>agraph 7,b74 ,su* t]m %all n include a plan ma9ta9$ by employ]s :i* h a common int]e/ o!r ?an hav+ adopt$ ! plan4 7,b7 ,requirem5ts = plan t]ms ,! requirem5ts ( ?is subp>agraph are met ) respect to any plan if ! t]ms ( ! plan-- 7i7 designate a pool$ plan provid] & provide t ! pool$ plan provid] is a nam$ fiduci>y ( ! plan2 7ii7 designate "o or m tru/ees meet+ ! requirem5ts ( section #djh7;a77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7o!r ?an an employ] 9 ! plan7 to be responsible = collect+ contributions to1 & hold+ ! assets (1 ! plan & require su* tru/ees to implem5t writt5 contribution collection proc$ures t are reasonable1 dilig5t1 & sy/ematic2 7iii7 provide t ea* employ] 9 ! plan reta9s fiduci>y responsibility =-- 7,i7 ! selection & monitor+ 9 accordance ) section #djd7;a7 ( ! p]son designat$ z ! pool$ plan provid] & any o!r p]son :o1 9 addition to ! pool$ plan provid]1 is designat$ z a nam$ fiduci>y ( ! plan2 & 7,,ii7 to ! ext5t n o!rwise delegat$ to ano!r fiduci>y by ! pool$ plan provid] & subject to ! provisions ( section #djd7;c71 ! inve/m5t & managem5t ( ! portion ( ! plan's assets attributable to ! employees ( ! employ] 7or b5efici>ies ( su* employees72 7iv7 provide t employ]s 9 ! plan1 & p>ticipants & b5efici>ies1 are n subject to unreasonable re/rictions1 fees1 or p5alties ) reg>d to ceas+ p>ticipation1 receipt ( di/ributions1 or o!rwise transf]r+ assets ( ! plan 9 accordance ) section #bjh or p>agraph 7#dd77;,c77i77,,ii72 7v7 require-- 7,i7 ! pool$ plan provid] to provide to employ]s 9 ! plan any disclosures or o!r in=mation :i* ! ,secret>y may require1 includ+ any disclosures or o!r in=mation to facilitate ! selection or any monitor+ ( ! pool$ plan provid] by employ]s 9 ! plan2 & 7,,ii7 ea* employ] 9 ! plan to take su* actions z ! ,secret>y or ! pool$ plan provid] det]m9es are necess>y to adm9i/] ! plan or = ! plan to meet any requirem5t applicable "u ?is ,act or ! ,int]nal ,rev5ue ,code ( #aihf to a plan describ$ 9 section #dja7;a7 ( su* ,code or to a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh ( su* ,code 7includ+ by reason ( subsection 7c7 !re(71 :i*ev] is applicable1 includ+ provid+ any disclosures or o!r in=mation :i* ! ,secret>y may require or :i* ! pool$ plan provid] o!rwise det]m9es are necess>y to adm9i/] ! plan or to all[ ! plan to meet su* requirem5ts2 & 7vi7 provide t any disclosure or o!r in=mation requir$ to be provid$ "u clause 7v7 may be provid$ 9 electronic =m & w be design$ to ensure only reasonable co/s are impos$ on pool$ plan provid]s & employ]s 9 ! plan4 7,c7 ,exceptions ,! t]m pool$ employ] plan does n include-- 7i7 a multiemploy] plan2 or 7ii7 a plan e/abli%$ be=e ! date ( ! enactm5t ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai unless ! plan adm9i/rator elects t ! plan w be treat$ z a pool$ employ] plan & ! plan meets ! requirem5ts ( ?is title applicable to a pool$ employ] plan e/abli%$ on or aft] su* date4 7,d7 ,treatm5t ( employ]s z plan sponsors ,except ) respect to ! adm9i/rative duties ( ! pool$ plan provid] describ$ 9 p>agraph 7#dd77;,a77i71 ea* employ] 9 a pool$ employ] plan %all be treat$ z ! plan sponsor ) respect to ! portion ( ! plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees74 7#dd7 ,pool$ plan provid] 7,a7 ,9 g5]al ,! t]m pool$ plan provid] means a p]son :o-- 7i7 is designat$ by ! t]ms ( a pool$ employ] plan z a nam$ fiduci>y1 z ! plan adm9i/rator1 & z ! p]son responsible = ! p]=mance ( all adm9i/rative duties 7includ+ conduct+ prop] te/+ ) respect to ! plan & ! employees ( ea* employ] 9 ! plan7 :i* are reasonably necess>y to ensure t-- 7,i7 ! plan meets any requirem5t applicable "u ?is ,act or ! ,int]nal ,rev5ue ,code ( #aihf to a plan describ$ 9 section #dja7;a7 ( su* ,code or to a plan t consi/s ( individual retirem5t acc\nts describ$ 9 section #djh ( su* ,code 7includ+ by reason ( subsection 7c7 !re(71 :i*ev] is applicable2 & 7,,ii7 ea* employ] 9 ! plan takes su* actions z ! ,secret>y or pool$ plan provid] det]m9es are necess>y = ! plan to meet ! requirem5ts describ$ 9 subclause 7,i71 includ+ provid+ ! disclosures & in=mation describ$ 9 p>agraph 7#dc77;,b77v77,,ii72 7ii7 regi/]s z a pool$ plan provid] ) ! ,secret>y1 & provides to ! ,secret>y su* o!r in=mation z ! ,secret>y may require1 be=e beg9n+ op]ations z a pool$ plan provid]2 7iii7 ackn[l$ges 9 writ+ t su* p]son is a nam$ fiduci>y1 & ! plan adm9i/rator1 ) respect to ! pool$ employ] plan2 & 7iv7 is responsible = ensur+ t all p]sons :o h&le assets (1 or :o are fiduci>ies (1 ! pool$ employ] plan are bond$ 9 accordance ) section #dab4 7,b7 ,audits1 exam9ations & inve/igations ,! ,secret>y may p]=m audits1 exam9ations1 & inve/igations ( pool$ plan provid]s z may be necess>y to en=ce & c>ry out ! purposes ( ?is p>agraph & p>agraph 7#dc74 7,c7 ,guidance ,! ,secret>y %all issue su* guidance z ! ,secret>y det]m9es appropriate to c>ry out ?is p>agraph & p>agraph 7#dc71 includ+ guidance-- 7i7 to id5tify ! adm9i/rative duties & o!r actions requir$ to be p]=m$ by a pool$ plan provid] "u ei!r su* p>agraph2 & 7ii7 :i* requires 9 appropriate cases t if an employ] 9 ! plan fails to take ! actions requir$ "u subp>agraph 7,a77i77,,ii7-- 7,i7 ! assets ( ! plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees7 are transf]r$ to a plan ma9ta9$ only by su* employ] 7or its successor71 to an eligible retirem5t plan z def9$ 9 section #djb7;c77#h77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf = ea* individual ^: acc\nt is transf]r$1 or to any o!r arrangem5t t ! ,secret>y det]m9es is appropriate 9 su* guidance2 & 7,,ii7 su* employ] 7& n ! plan ) respect to :i* ! failure occurr$ or any o!r employ] 9 su* plan7 %all1 except to ! ext5t provid$ 9 su* guidance1 be liable = any liabilities ) respect to su* plan attributable to employees ( su* employ] 7or b5efici>ies ( su* employees74 ,! ,secret>y %all take into acc\nt "u clause 7ii7 :e!r ! failure ( an employ] or pool$ plan provid] to provide any disclosures or o!r in=mation1 or to take any o!r action1 necess>y to adm9i/] a plan or to all[ a plan to meet requirem5ts describ$ 9 subp>agraph 7,a77i77,,ii7 has cont9u$ ov] a p]iod ( "t t demon/rates a lack ( commitm5t to compliance4 ,! ,secret>y may waive ! requirem5ts ( subclause 7ii77,i7 9 appropriate circum/ances if ! ,secret>y det]m9es x is 9 ! be/ int]e/s ( ! employees ( ! employ] ref]r$ to 9 su* clause 7& ! b5efici>ies ( su* employees7 to reta9 ! assets 9 ! plan ) respect to :i* ! employ]'s failure occurr$4 7,d7 ,good fai? compliance ) law be=e guidance ,an employ] or pool$ plan provid] %all n be treat$ z fail+ to meet a requirem5t ( guidance issu$ by ! ,secret>y "u subp>agraph 7,c7 if1 be=e ! issuance ( su* guidance1 ! employ] or pool$ plan provid] complies 9 good fai? ) a reasonable int]pretation ( ! provisions ( ?is p>agraph1 or p>agraph 7#dc71 to :i* su* guidance relates4 7,e7 ,aggregation rules ,= purposes ( ?is p>agraph1 9 det]m9+ :e!r a p]son meets ! requirem5ts ( ?is p>agraph to be a pool$ plan provid] ) respect to any plan1 all p]sons :o p]=m s]vices = ! plan & :o are treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf %all be treat$ z "o p]son4 4 7#b7 ,bond+ requirem5ts = pool$ employ] plans ,! la/ s5t5ce ( section #dab7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aaab7;a77 is am5d$ by ins]t+ or 9 ! case ( a pool$ employ] plan 7z def9$ 9 section #c7dc77 aft] section #djg7;d77#a774 7#c7 ,con=m+ & te*nical am5dm5ts ,section #c ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7 is am5d$-- 7,a7 9 p>agraph 7#af77;,b7-- 7i7 by /rik+ or at ! end ( clause 7ii72 & 7ii7 by /rik+ ! p]iod at ! end & ins]t+ 1 or 7iv7 9 ! case ( a pool$ employ] plan1 ! pool$ plan provid]42 & 7,b7 by /rik+ ! second p>agraph 7#da74 7d7 ,pool$ employ] & multiple employ] plan report+ 7#a7 ,additional in=mation ,section #ajc ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbc7 is am5d$-- 7,a7 9 subsection 7a77#a77;,b71 by /rik+ applicable subsections 7d71 7e71 & 7f7 & ins]t+ applicable subsections 7d71 7e71 7f71 & 7g72 & 7,b7 by am5d+ subsection 7g7 to read z foll[s3 7g7 ,additional in=mation ) respect to pool$ employ] & multiple employ] plans ,an annual report "u ?is section = a plan ye> %all include-- 7#a7 ) respect to any plan to :i* section #baj7;a7 applies 7includ+ a pool$ employ] plan71 a li/ ( employ]s 9 ! plan & a good fai? e/imate ( ! p]c5tage ( total contributions made by su* employ]s dur+ ! plan ye> & ! aggregate acc\nt balances attributable to ea* employ] 9 ! plan 7det]m9$ z ! sum ( ! acc\nt balances ( ! employees ( su* employ] 7& ! b5efici>ies ( su* employees772 & 7#b7 ) respect to a pool$ employ] plan1 ! id5tify+ in=mation = ! p]son designat$ "u ! t]ms ( ! plan z ! pool$ plan provid]4 4 7#b7 ,simplifi$ annual reports ,section #ajd7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;a77 is am5d$ by /rik+ p>agraph 7#b77;,a7 & ins]t+ ! foll[+3 7#b7 7,a7 ,) respect to annual reports requir$ to be fil$ ) ! ,secret>y "u ?is "p1 ! ,secret>y may by regulation prescribe simplifi$ annual reports = any p5sion plan t-- 7i7 cov]s few] ?an #ajj p>ticipants2 or 7ii7 is a plan describ$ 9 section #baj7;a7 t cov]s few] ?an #a1jjj p>ticipants1 b only if no s+le employ] 9 ! plan has #ajj or m p>ticipants cov]$ by ! plan4 4 7e7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 7#b7 ,rule ( con/ruction ,no?+ 9 ! am5dm5ts made by subsection 7a7 %all be con/ru$ z limit+ ! au?ority ( ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate 7det]m9$ )\t reg>d to su* am5dm5t7 to provide = ! prop] treatm5t ( a failure to meet any requirem5t applicable "u ! ,int]nal ,rev5ue ,code ( #aihf ) respect to "o employ] 7& its employees7 9 a multiple employ] plan4 #ajb4 ,increase 9 #aj p]c5t cap = automatic enrollm5t safe h>bor aft] #a/ plan ye> 7a7 ,9 g5]al ,section #dja7k77#ac77;,c77iii7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ does n exce$ #aj p]c5t & ins]t+ does n exce$ #ae p]c5t 7#aj p]c5t dur+ ! p]iod describ$ 9 subclause 7,i774 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #ajc4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus 7a7 ,limitation ( annual safe h>bor notice to mat*+ contribution plans 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ if su* arrangem5t & all t foll[s & ins]t+ 8if su* arrangem5t-- 7i7 meets ! contribution requirem5ts ( subp>agraph 7,b7 & ! notice requirem5ts ( subp>agraph 7,d71 or 7ii7 meets ! contribution requirem5ts ( subp>agraph 7,c74 4 7#b7 ,automatic contribution arrangem5ts ,subp>agraph 7,b7 ( section #dja7k77#ac7 ( su* ,code is am5d$ by /rik+ means & all t foll[s & ins]t+ 8means a ca% or def]r$ arrangem5t-- 7i7 :i* is describ$ 9 subp>agraph 7,d77i77,i7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 ?r\gh 7,e71 or 7ii7 :i* is describ$ 9 subp>agraph 7,d77i77,,ii7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 & 7,d74 4 7b7 ,nonelective contributions ,section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g71 & by ins]t+ aft] subp>agraph 7,e7 ! foll[+ new subp>agraph3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,c7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,b7 or p>agraph 7#ac77;,d77i77,i7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,c7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7c7 ,automatic contribution arrangem5ts ,section #dja7k77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,d77i77,,ii7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,d77i77,i7 or p>agraph 7#ab77;,b7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,d77i77,,ii7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #ajd4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #de;,e7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#a7 = ! fir/ cr$it ye> & ea* ( ! #b taxable ye>s imm$iately foll[+ ! fir/ cr$it ye>1 ! great] (-- 7,a7 #ejj1 or 7,b7 ! less] (-- 7i7 #bej = ea* employee ( ! eligible employ] :o is n a highly comp5sat$ employee 7z def9$ 9 section #dad7q77 & :o is eligible to p>ticipate 9 ! eligible employ] plan ma9ta9$ by ! eligible employ]1 or 7ii7 #e1jjj1 & 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #aje4 ,small employ] automatic enrollm5t cr$it 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,t4 ,auto-enrollm5t option = retirem5t sav+s options provid$ by small employ]s 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible employ]1 ! retirem5t auto-enrollm5t cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to-- 7#a7 #ejj = any taxable ye> occurr+ dur+ ! cr$it p]iod1 & 7#b7 z]o = any o!r taxable ye>4 7b7 ,cr$it p]iod ,= purposes ( subsection 7a7-- 7#a7 ,9 g5]al ,! cr$it p]iod ) respect to any eligible employ] is ! #c-taxable-ye> p]iod beg9n+ ) ! fir/ taxable ye> = :i* ! employ] includes an eligible automatic contribution arrangem5t 7z def9$ 9 section #dad7w77#c77 9 a qualifi$ employ] plan 7z def9$ 9 section #digb7;d77 sponsor$ by ! employ]4 7#b7 ,ma9t5ance ( arrangem5t ,no taxable ye> ) respect to an employ] %all be treat$ z occurr+ )9 ! cr$it p]iod unless ! arrangem5t describ$ 9 p>agraph 7#a7 is includ$ 9 ! plan = su* ye>4 7c7 ,eligible employ] ,= purposes ( ?is section1 ! t]m eligible employ] has ! mean+ giv5 su* t]m 9 section #djh7p77#b77;,c77i74 4 7b7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ plus at ! end ( p>agraph 7#ca71 by /rik+ ! p]iod at ! end ( p>agraph 7#cb7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cc7 9 ! case ( an eligible employ] 7z def9$ 9 section #de,t7c771 ! retirem5t auto-enrollm5t cr$it det]m9$ "u section #de,t7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #de,s ! foll[+ new item3 ,sec4 #de,t4 ,auto-enrollm5t option = retirem5t sav+s options provid$ by small employ]s4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #ajf4 ,c]ta9 taxable non-tuition fell[%ip & /ip5d paym5ts treat$ z comp5sation = ,,ira purposes 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #bai7;f7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 ,! t]m comp5sation %all include any am\nt :i* is includ$ 9 ! individual's gross income & paid to ! individual to aid ! individual 9 ! pursuit ( graduate or po/doctoral /udy44 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #ajg4 ,repeal ( maximum age = traditional ,,ira contributions 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #bai7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is repeal$4 7b7 ,coord9ation ) qualifi$ *>itable di/ributions ,add at ! end ( section #djh7;d77#h77;,a7 ( su* ,code ! foll[+3 ,! am\nt ( di/ributions n includible 9 gross income by reason ( ! prec$+ s5t5ce = a taxable ye> 7det]m9$ )\t reg>d to ?is s5t5ce7 %all be r$uc$ 7b n bel[ z]o7 by an am\nt equal to ! excess (-- 7i7 ! aggregate am\nt ( d$uctions all[$ to ! taxpay] "u section #bai = all taxable ye>s end+ on or aft] ! date ! taxpay] atta9s age #gj1 ov] 7ii7 ! aggregate am\nt ( r$uctions "u ?is s5t5ce = all taxable ye>s prec$+ ! curr5t taxable ye>4 4 7c7 ,con=m+ am5dm5t ,subsection 7c7 ( section #djh;,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ p>agraph 7#d7 & by r$esignat+ p>agraphs 7#e71 7#f71 & 7#g7 z p>agraphs 7#d71 7#e71 & 7#f71 respectively4 7d7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5ts made by ?is section %all apply to contributions made = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 7#b7 ,subsection 7b7 ,! am5dm5t made by subsection 7b7 %all apply to di/ributions made = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #ajh4 ,qualifi$ employ] plans prohibit$ f mak+ loans ?r\gh cr$it c>ds & o!r simil> arrangem5ts 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #gb7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subp>agraph 7,d7 z subp>agraph 7,e7 & by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 ,prohibition ( loans ?r\gh cr$it c>ds & o!r simil> arrangem5ts ,subp>agraph 7,a7 %all n apply to any loan :i* is made ?r\gh ! use ( any cr$it c>d or any o!r simil> arrangem5t4 4 7b7 ,effective date ,! am5dm5ts made by subsection 7a7 %all apply to loans made aft] ! date ( ! enactm5t ( ?is ,act4 #aji4 ,portability ( lifetime income options 7a7 ,9 g5]al ,subsection 7a7 ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] p>agraph 7#cg7 ! foll[+ new p>agraph3 7#ch7 ,portability ( lifetime income 7,a7 ,9 g5]al ,except z may be o!rwise provid$ by regulations1 a tru/ =m+ "p ( a def9$ contribution plan %all n be treat$ z fail+ to con/itute a qualifi$ tru/ "u ?is section solely by reason ( all[+-- 7i7 qualifi$ di/ributions ( a lifetime income inve/m5t1 or 7ii7 di/ributions ( a lifetime income inve/m5t 9 ! =m ( a qualifi$ plan di/ribution annuity contract1 on or aft] ! date t is #ij days prior to ! date on :i* su* lifetime income inve/m5t is no long] au?oriz$ to be held z an inve/m5t option "u ! plan4 7,b7 ,def9itions ,= purposes ( ?is subsection-- 7i7 ! t]m qualifi$ di/ribution means a direct tru/ee-to-tru/ee transf] describ$ 9 p>agraph 7#ca77;,a7 to an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b771 7ii7 ! t]m lifetime income inve/m5t means an inve/m5t option :i* is design$ to provide an employee ) election rights-- 7,i7 :i* are n uni=mly available ) respect to o!r inve/m5t options "u ! plan1 & 7,,ii7 :i* are to a lifetime income feature available ?r\gh a contract or o!r arrangem5t (f]$ "u ! plan 7or "u ano!r eligible retirem5t plan 7z s def9$71 if paid by means ( a direct tru/ee-to-tru/ee transf] describ$ 9 p>agraph 7#ca77;,a7 to su* o!r eligible retirem5t plan71 7iii7 ! t]m lifetime income feature means-- 7,i7 a feature :i* gu>antees a m9imum level ( income annually 7or m frequ5tly7 = at lea/ ! rema9d] ( ! life ( ! employee or ! jo9t lives ( ! employee & ! employee's designat$ b5efici>y1 or 7,,ii7 an annuity payable on behalf ( ! employee "u :i* paym5ts are made 9 sub/antially equal p]iodic paym5ts 7n less frequ5tly ?an annually7 ov] ! life ( ! employee or ! jo9t lives ( ! employee & ! employee's designat$ b5efici>y1 & 7iv7 ! t]m qualifi$ plan di/ribution annuity contract means an annuity contract pur*as$ = a p>ticipant & di/ribut$ to ! p>ticipant by a plan or contract describ$ 9 subp>agraph 7,b7 ( section #djb7;c77#h7 7)\t reg>d to clauses 7i7 & 7ii7 !re(74 4 7b7 ,ca% or def]r$ arrangem5t 7#a7 ,9 g5]al ,clause 7i7 ( section #dja7k77#b77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( subclause 7,,iv71 by /rik+ & at ! end ( subclause 7,v7 & ins]t+ or1 & by add+ at ! end ! foll[+ new subclause3 7,,vi7 except z may be o!rwise provid$ by regulations1 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 subsection 7a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! arrangem5t1 & 4 7#b7 ,di/ribution requirem5t ,subp>agraph 7,b7 ( section #dja7k77#b7 ( su* ,code1 z am5d$ by p>agraph 7#a71 is am5d$ by /rik+ & at ! end ( clause 7i71 by /rik+ ! semicolon at ! end ( clause 7ii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 except z may be o!rwise provid$ by regulations1 9 ! case ( am\nts describ$ 9 clause 7i77,,vi71 w be di/ribut$ only 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 subsection 7a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 subsection 7a77#ch77;,b77iv771 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,p>agraph 7#aa7 ( section #djc7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ 1 or1 & by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 except z may be o!rwise provid$ by regulations1 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii77-- 7i7 on or aft] ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! contract1 & 7ii7 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv774 4 7#b7 ,cu/odial acc\nts ,subp>agraph 7,a7 ( section #djc7;b77#g7 ( su* ,code is am5d$ by /rik+ if-- & all t foll[s & ins]t+ 8if ! am\nts are to be inve/$ 9 regulat$ inve/m5t company /ock to be held 9 t cu/odial acc\nt1 & "u ! cu/odial acc\nt-- 7i7 no su* am\nts may be paid or made available to any di/ributee 7unless su* am\nt is a di/ribution to :i* section #gb7t77#b77;,g7 applies7 be=e-- 7,i7 ! employee dies1 7,,ii7 ! employee atta9s age #ei1 7,,iii7 ! employee has a sev]ance f employm5t1 7,,iv7 ! employee becomes disabl$ 7)9 ! mean+ ( section #gb7m77#g771 7,v7 9 ! case ( contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d771 ! employee enc\nt]s f9ancial h>d%ip1 or 7,,vi7 except z may be o!rwise provid$ by regulations1 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! contract1 & 7ii7 9 ! case ( am\nts describ$ 9 clause 7i77,,vi71 su* am\nts w be di/ribut$ only 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv774 4 7d7 ,eligible def]r$ comp5sation plans 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #deg7;d77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( clause 7ii71 by ins]t+ or at ! end ( clause 7iii71 & by add+ aft] clause 7iii7 ! foll[+3 7iv7 except z may be o!rwise provid$ by regulations1 9 ! case ( a plan ma9ta9$ by an employ] describ$ 9 subsection 7e77#a77;,a71 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! plan1 4 7#b7 ,di/ribution requirem5t ,p>agraph 7#a7 ( section #deg7;d7 ( su* ,code is am5d$ by /rik+ & at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ 1 &1 & by ins]t+ aft] subp>agraph 7,c7 ! foll[+ new subp>agraph3 7,d7 except z may be o!rwise provid$ by regulations1 9 ! case ( am\nts describ$ 9 subp>agraph 7,a77iv71 su* am\nts w be di/ribut$ only 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv774 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #aaj4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans ,n lat] ?an six mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue guidance to provide t1 if an employ] t]m9ates ! plan "u :i* am\nts are contribut$ to a cu/odial acc\nt "u subp>agraph 7,a7 ( section #djc7;b77#g71 ! plan adm9i/rator or cu/odian may di/ribute an individual cu/odial acc\nt 9 k9d to a p>ticipant or b5efici>y ( ! plan & ! di/ribut$ cu/odial acc\nt %all be ma9ta9$ by ! cu/odian on a tax-def]r$ basis z a section #djc7;b77#g7 cu/odial acc\nt1 simil> to ! treatm5t ( fully-paid individual annuity contracts "u ,rev5ue ,rul+ #bjaa-g1 until am\nts are actually paid to ! p>ticipant or b5efici>y4 ,! guidance %all provide fur!r 7i7 t ! section #djc7;b77#g7 /atus ( ! di/ribut$ cu/odial acc\nt is g5]ally ma9ta9$ if ! cu/odial acc\nt !reaft] adh]es to ! requirem5ts ( section #djc7;b7 t are 9 effect at ! "t ( ! di/ribution ( ! acc\nt & 7ii7 t a cu/odial acc\nt w\ld n be consid]$ di/ribut$ to ! p>ticipant or b5efici>y if ! employ] has any mat]ial reta9$ rights "u ! acc\nt 7b ! employ] w\ld n be treat$ z reta9+ mat]ial rights simply because ! cu/odial acc\nt 0 orig9ally op5$ "u a gr\p contract74 ,su* guidance %all be retroactively effective = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjjh4 #aaa4 ,cl>ification ( retirem5t income acc\nt rules relat+ to *ur*-controll$ organizations 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #djc7;b77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 7includ+ an employee describ$ 9 section #dad7;e77#c77;,b77 aft] employee describ$ 9 p>agraph 7#a74 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to ye>s beg9n+ be=e1 on1 or aft] ! date ( ! enactm5t ( ?is ,act4 #aab4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate 7a7 ,p>ticipation requirem5t 7#a7 ,9 g5]al ,section #dja7k77#b77;,d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7,d7 :i* does n require1 z a condition ( p>ticipation 9 ! arrangem5t1 t an employee complete a p]iod ( s]vice ) ! employ] 7or employ]s7 ma9ta9+ ! plan ext5d+ beyond ! close ( ! e>li] (-- 7i7 ! p]iod p]mitt$ "u section #daj7;a77#a7 7det]m9$ )\t reg>d to subp>agraph 7,b77i7 !re(71 or 7ii7 subject to ! provisions ( p>agraph 7#ae71 ! fir/ p]iod ( #c consecutive #ab-mon? p]iods dur+ ea* ( :i* ! employee has at lea/ #ejj h\rs ( s]vice4 4 7#b7 ,special rules ,section #dja7k7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,special rules = p>ticipation requirem5t = long-t]m1 "p-"t work]s ,= purposes ( p>agraph 7#b77;,d77ii7-- 7,a7 ,age requirem5t mu/ be met ,p>agraph 7#b77;,d77ii7 %all n apply to an employee unless ! employee has met ! requirem5t ( section #daj7;a77#a77;,a77i7 by ! close ( ! la/ ( ! #ab-mon? p]iods describ$ 9 su* p>agraph4 7,b7 ,nondiscrim9ation & top-heavy rules n to apply 7i7 ,nondiscrim9ation rules ,9 ! case ( employees :o are eligible to p>ticipate 9 ! arrangem5t solely by reason ( p>agraph 7#b77;,d77ii7-- 7,i7 not)/&+ subsection 7a77#d71 an employ] %all n be requir$ to make nonelective or mat*+ contributions on behalf ( su* employees ev5 if su* contributions are made on behalf ( o!r employees eligible to p>ticipate 9 ! arrangem5t1 & 7,,ii7 an employ] may elect to exclude su* employees f ! application ( subsection 7a77#d71 p>agraphs 7#c71 7#ab71 & 7#ac71 subsection 7m77#b71 & section #daj7;b74 7ii7 ,top-heavy rules ,an employ] may elect to exclude all employees :o are eligible to p>ticipate 9 a plan ma9ta9$ by ! employ] solely by reason ( p>agraph 7#b77;,d77ii7 f ! application ( ! ve/+ & b5efit requirem5ts "u subsections 7b7 & 7c7 ( section #daf4 7iii7 ,ve/+ ,= purposes ( det]m9+ :e!r an employee describ$ 9 clause 7i7 has a non=feitable "r to employ] contributions 7o!r ?an contributions describ$ 9 p>agraph 7#c77;,d77i77 "u ! arrangem5t1 ea* #ab-mon? p]iod = :i* ! employee has at lea/ #ejj h\rs ( s]vice %all be treat$ z a ye> ( s]vice1 & section #daa7;a77#f7 %all be appli$ by sub/itut+ at lea/ #ejj h\rs ( s]vice = m ?an #ejj h\rs ( s]vice 9 subp>agraph 7,a7 !re(4 7iv7 ,employees :o become full-"t employees ,?is subp>agraph 7o!r ?an clause 7iii77 %all cease to apply to any employee z ( ! fir/ plan ye> beg9n+ aft] ! plan ye> 9 :i* ! employee meets ! requirem5ts ( section #daj7;a77#a77;,a77ii7 )\t reg>d to p>agraph 7#b77;,d77ii74 7,c7 ,exception = employees "u collectively b>ga9$ plans1 etc ,p>agraph 7#b77;,d77ii7 %all n apply to employees describ$ 9 section #daj7;b77#c74 7,d7 ,special rules 7i7 ,"t ( p>ticipation ,! rules ( section #daj7;a77#d7 %all apply to an employee eligible to p>ticipate 9 an arrangem5t solely by reason ( p>agraph 7#b77;,d77ii74 7ii7 #ab-mon? p]iods #ab-mon? p]iods %all be det]m9$ 9 ! same mann] z "u ! la/ s5t5ce ( section #daj7;a77#c77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjbj1 except t1 = purposes ( section #dja7k77#b77;,d77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by su* am5dm5ts71 #ab-mon? p]iods beg9n+ be=e ,janu>y #a1 #bjba1 %all n be tak5 into acc\nt4 #aac4 ,p5alty-free )drawals f retirem5t plans = individuals 9 case ( bir? ( *ild or adoption 7a7 ,9 g5]al ,section #gb7t77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,h7 ,di/ributions f retirem5t plans 9 case ( bir? ( *ild or adoption 7i7 ,9 g5]al ,any qualifi$ bir? or adoption di/ribution4 7ii7 ,limitation ,! aggregate am\nt :i* may be treat$ z qualifi$ bir? or adoption di/ributions by any individual ) respect to any bir? or adoption %all n exce$ #e1jjj4 7iii7 ,qualifi$ bir? or adoption di/ribution ,= purposes ( ?is subp>agraph-- 7,i7 ,9 g5]al ,! t]m qualifi$ bir? or adoption di/ribution means any di/ribution f an applicable eligible retirem5t plan to an individual if made dur+ ! #a-ye> p]iod beg9n+ on ! date on :i* a *ild ( ! individual is born or on :i* ! legal adoption by ! individual ( an eligible adoptee is f9aliz$4 7,,ii7 ,eligible adoptee ,! t]m eligible adoptee means any individual 7o!r ?an a *ild ( ! taxpay]'s sp\se7 :o has n atta9$ age #ah or is physically or m5tally incapable ( self-support4 7iv7 ,treatm5t ( plan di/ributions 7,i7 ,9 g5]al ,if a di/ribution to an individual w\ld 7)\t reg>d to clause 7ii77 be a qualifi$ bir? or adoption di/ribution1 a plan %all n be treat$ z fail+ to meet any requirem5t ( ?is title m]ely because ! plan treats ! di/ribution z a qualifi$ bir? or adoption di/ribution1 unless ! aggregate am\nt ( su* di/ributions f all plans ma9ta9$ by ! employ] 7& any memb] ( any controll$ gr\p :i* includes ! employ]7 to su* individual exce$s #e1jjj4 7,,ii7 ,controll$ gr\p ,= purposes ( subclause 7,i71 ! t]m controll$ gr\p means any gr\p treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad4 7v7 ,am\nt di/ribut$ may be repaid 7,i7 ,9 g5]al ,any individual :o receives a qualifi$ bir? or adoption di/ribution may make "o or m contributions 9 an aggregate am\nt n to exce$ ! am\nt ( su* di/ribution to an applicable eligible retirem5t plan ( :i* su* individual is a b5efici>y & to :i* a rollov] contribution ( su* di/ribution c\ld be made "u section #djb7;c71 #djc7;a77#d71 #djc7;b77#h71 #djh7;d77#c71 or #deg7;e77#af71 z ! case may be4 7,,ii7 ,limitation on contributions to applicable eligible retirem5t plans o!r ?an iras ,! aggregate am\nt ( contributions made by an individual "u subclause 7,i7 to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan %all n exce$ ! aggregate am\nt ( qualifi$ bir? or adoption di/ributions :i* are made f su* plan to su* individual4 ,subclause 7,i7 %all n apply to contributions to any applicable eligible retirem5t plan :i* is n an individual retirem5t plan unless ! individual is eligible to make contributions 7o!r ?an ^? describ$ 9 subclause 7,i77 to su* applicable eligible retirem5t plan4 7,,iii7 ,treatm5t ( repaym5ts ( di/ributions f applicable eligible retirem5t plans o!r ?an ,i,r,as ,if a contribution is made "u subclause 7,i7 ) respect to a qualifi$ bir? or adoption di/ribution f an applicable eligible retirem5t plan o!r ?an an individual retirem5t plan1 !n ! taxpay] %all1 to ! ext5t ( ! am\nt ( ! contribution1 be treat$ z hav+ receiv$ su* di/ribution 9 an eligible rollov] di/ribution 7z def9$ 9 section #djb7;c77#d77 & z hav+ transf]r$ ! am\nt to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7,,iv7 ,treatm5t ( repaym5ts = di/ributions f iras ,if a contribution is made "u subclause 7,i7 ) respect to a qualifi$ bir? or adoption di/ribution f an individual retirem5t plan1 !n1 to ! ext5t ( ! am\nt ( ! contribution1 su* di/ribution %all be treat$ z a di/ribution describ$ 9 section #djh7;d77#c7 & z hav+ be5 transf]r$ to ! applicable eligible retirem5t plan 9 a direct tru/ee to tru/ee transf] )9 #fj days ( ! di/ribution4 7vi7 ,def9ition & special rules ,= purposes ( ?is subp>agraph-- 7,i7 ,applicable eligible retirem5t plan ,! t]m applicable eligible retirem5t plan means an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 o!r ?an a def9$ b5efit plan4 7,,ii7 ,exemption ( di/ributions f tru/ee to tru/ee transf] & )hold+ rules ,= purposes ( sections #dja7;a77#ca71 #djb7;f71 & #cdje1 a qualifi$ bir? or adoption di/ribution %all n be treat$ z an eligible rollov] di/ribution4 7,,iii7 ,taxpay] mu/ include t9 ,a di/ribution %all n be treat$ z a qualifi$ bir? or adoption di/ribution ) respect to any *ild or eligible adoptee unless ! taxpay] includes ! "n1 age1 & ,,t9 ( su* *ild or eligible adoptee on ! taxpay]'s return ( tax = ! taxable ye>4 7,,iv7 ,di/ributions treat$ z meet+ plan di/ribution requirem5ts ,any qualifi$ bir? or adoption di/ribution %all be treat$ z meet+ ! requirem5ts ( sections #dja7k77#b77;,b77i71 #djc7;b77#g77;,a77ii71 #djc7;b77#aa71 & #deg7;d77#a77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjai4 #aad4 ,increase 9 age = requir$ beg9n+ date = m&atory di/ributions 7a7 ,9 g5]al ,section #dja7;a77#i77;,c77i77,i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ age #gj & ins]t+ age #gb4 7b7 ,sp\se b5efici>ies2 special rule = own]s ,subp>agraphs 7,b77iv77,i7 & 7,c77ii77,i7 ( section #dja7;a77#i7 ( su* ,code are ea* am5d$ by /rik+ age #gj & ins]t+ age #gb4 7c7 ,con=m+ am5dm5ts ,! la/ s5t5ce ( section #djh7;b7 ( su* ,code is am5d$ by /rik+ age #gj & ins]t+ age #gb4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions requir$ to be made aft] ,decemb] #ca1 #bjai1 ) respect to individuals :o atta9 age #gj aft] su* date4 #aae4 ,special rules = m9imum fund+ /&>ds = community newspap] plans 7a7 ,am5dm5t to ,int]nal ,rev5ue ,code ( #aihf ,section #dcj ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,special rules = community newspap] plans 7#a7 ,9 g5]al ,! plan sponsor ( a community newspap] plan "u :i* no p>ticipant has _h ! p>ticipant's accru$ b5efit increas$ 7:e!r because ( s]vice or comp5sation7 aft] ,decemb] #ca1 #bjag1 may elect to h ! alt]native /&>ds describ$ 9 p>agraph 7#c7 apply to su* plan1 & any plan sponsor$ by any memb] ( ! same controll$ gr\p4 7#b7 ,election ,an election "u p>agraph 7#a7 %all be made at su* "t & 9 su* mann] z prescrib$ by ! ,secret>y4 ,su* election1 once made ) respect to a plan ye>1 %all apply to all subsequ5t plan ye>s unless revok$ ) ! cons5t ( ! ,secret>y4 7#c7 ,alt]native m9imum fund+ /&>ds ,! alt]native /&>ds describ$ 9 ?is p>agraph are ! foll[+3 7,a7 ,int]e/ rates 7i7 ,9 g5]al ,not)/&+ subsection 7h77#b77;,c7 & except z provid$ 9 clause 7ii71 ! fir/1 second1 & ?ird segm5t rates 9 effect = any mon? = purposes ( ?is section %all be #h p]c5t4 7ii7 ,new b5efit accruals ,not)/&+ subsection 7h77#b71 = purposes ( det]m9+ ! fund+ t>get & normal co/ ( a plan = any plan ye>1 ! pres5t value ( any b5efits accru$ or e>n$ "u ! plan = a plan ye> ) respect to :i* an election "u p>agraph 7#a7 is 9 effect %all be det]m9$ on ! basis ( ! ,unit$ ,/ates ,treasury obligation yield curve = ! day t is ! valuation date ( su* plan = su* plan ye>4 7iii7 ,unit$ ,/ates ,treasury obligation yield curve ,= purposes ( ?is subsection1 ! t]m ,unit$ ,/ates ,treasury obligation yield curve means1 ) respect to any day1 a yield curve :i* %all be prescrib$ by ! ,secret>y = su* day on int]e/-be>+ obligations ( ! ,unit$ ,/ates4 7,b7 ,%ortfall amortization base 7i7 ,previ\s %ortfall amortization bases ,! %ortfall amortization bases det]m9$ "u subsection 7c77#c7 = all plan ye>s prec$+ ! fir/ plan ye> to :i* ! election "u p>agraph 7#a7 applies 7& all %ortfall amortization in/allm5ts det]m9$ ) respect to su* bases7 %all be r$uc$ to z]o "u rules simil> to ! rules ( subsection 7c77#f74 7ii7 ,new %ortfall amortization base ,not)/&+ subsection 7c77#c71 ! %ortfall amortization base = ! fir/ plan ye> to :i* ! election "u p>agraph 7#a7 applies %all be ! fund+ %ortfall ( su* plan = su* plan ye> 7det]m9$ us+ ! int]e/ rates z modifi$ "u subp>agraph 7,a774 7,c7 ,det]m9ation ( %ortfall amortization in/allm5ts 7i7 #cj-ye> p]iod ,subp>agraphs 7,a7 & 7,b7 ( subsection 7c77#b7 %all be appli$ by sub/itut+ #cj-plan-ye> = #g-plan-ye> ea* place x appe>s4 7ii7 ,no special election ,! election "u subp>agraph 7,d7 ( subsection 7c77#b7 %all n apply to any plan ye> to :i* ! election "u p>agraph 7#a7 applies4 7,d7 ,exemption f at-risk treatm5t ,subsection 7i7 %all n apply4 7#d7 ,community newspap] plan ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m community newspap] plan means a plan to :i* ?is section applies ma9ta9$ by an employ] :i*1 z ( ,decemb] #ca1 #bjag-- 7i7 publi%es & di/ributes daily1 ei!r electronically or 9 pr9t$ =m1 #a or m community newspap]s 9 a s+le ,/ate1 7ii7 is n a company ! /ock ( :i* is publicly trad$ 7on a /ock ex*ange or 9 an ov]-!-c\nt] m>ket71 & is n controll$1 directly or indirectly1 by su* a company1 7iii7 is controll$1 directly or indirectly-- 7,i7 by #a or m p]sons resid+ prim>ily 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 7,,ii7 = n less ?an #cj ye>s by individuals :o are memb]s ( ! same family1 7,,iii7 by a tru/ creat$ or organiz$ 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 ! sole tru/ees ( :i* are p]sons describ$ 9 subclause 7,i7 or 7,,ii71 7,,iv7 by an entity :i* is describ$ 9 section #eja7;c77#c7 & exempt f taxation "u section #eja7;a71 :i* is organiz$ & op]at$ 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 & ! prim>y purpose ( :i* is to b5efit communities 9 su* ,/ate1 or 7,v7 by a comb9ation ( p]sons describ$ 9 subclause 7,i71 7,,iii71 or 7,,iv71 & 7iv7 does n control1 directly or indirectly1 any newspap] 9 any o!r ,/ate4 7,b7 ,community newspap] ,! t]m community newspap] means a newspap] :i* prim>ily s]ves a metropolitan /ati/ical area1 z det]m9$ by ! ,(fice ( ,managem5t & ,budget1 ) a population ( n less ?an #ajj1jjj4 7,c7 ,control ,a p]son %all be treat$ z controll$ by ano!r p]son if su* o!r p]son possesses1 directly or indirectly1 ! p[] to direct or cause ! direction & managem5t ( su* p]son 7includ+ ! p[] to elect a majority ( ! memb]s ( ! bo>d ( directors ( su* p]son7 ?r\gh ! own]%ip ( vot+ securities4 7#e7 ,controll$ gr\p ,= purposes ( ?is subsection1 ! t]m controll$ gr\p means all p]sons treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad z ( ! date ( ! enactm5t ( ?is subsection4 4 7b7 ,am5dm5t to ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #cjc ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajhc7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7m7 ,special rules = community newspap] plans 7#a7 ,9 g5]al ,! plan sponsor ( a community newspap] plan "u :i* no p>ticipant has _h ! p>ticipant's accru$ b5efit increas$ 7:e!r because ( s]vice or comp5sation7 aft] ,decemb] #ca1 #bjag1 may elect to h ! alt]native /&>ds describ$ 9 p>agraph 7#c7 apply to su* plan1 & any plan sponsor$ by any memb] ( ! same controll$ gr\p4 7#b7 ,election ,an election "u p>agraph 7#a7 %all be made at su* "t & 9 su* mann] z prescrib$ by ! ,secret>y ( ! ,treasury4 ,su* election1 once made ) respect to a plan ye>1 %all apply to all subsequ5t plan ye>s unless revok$ ) ! cons5t ( ! ,secret>y ( ! ,treasury4 7#c7 ,alt]native m9imum fund+ /&>ds ,! alt]native /&>ds describ$ 9 ?is p>agraph are ! foll[+3 7,a7 ,int]e/ rates 7i7 ,9 g5]al ,not)/&+ subsection 7h77#b77;,c7 & except z provid$ 9 clause 7ii71 ! fir/1 second1 & ?ird segm5t rates 9 effect = any mon? = purposes ( ?is section %all be #h p]c5t4 7ii7 ,new b5efit accruals ,not)/&+ subsection 7h77#b71 = purposes ( det]m9+ ! fund+ t>get & normal co/ ( a plan = any plan ye>1 ! pres5t value ( any b5efits accru$ or e>n$ "u ! plan = a plan ye> ) respect to :i* an election "u p>agraph 7#a7 is 9 effect %all be det]m9$ on ! basis ( ! ,unit$ ,/ates ,treasury obligation yield curve = ! day t is ! valuation date ( su* plan = su* plan ye>4 7iii7 ,unit$ ,/ates ,treasury obligation yield curve ,= purposes ( ?is subsection1 ! t]m ,unit$ ,/ates ,treasury obligation yield curve means1 ) respect to any day1 a yield curve :i* %all be prescrib$ by ! ,secret>y ( ! ,treasury = su* day on int]e/-be>+ obligations ( ! ,unit$ ,/ates4 7,b7 ,%ortfall amortization base 7i7 ,previ\s %ortfall amortization bases ,! %ortfall amortization bases det]m9$ "u subsection 7c77#c7 = all plan ye>s prec$+ ! fir/ plan ye> to :i* ! election "u p>agraph 7#a7 applies 7& all %ortfall amortization in/allm5ts det]m9$ ) respect to su* bases7 %all be r$uc$ to z]o "u rules simil> to ! rules ( subsection 7c77#f74 7ii7 ,new %ortfall amortization base ,not)/&+ subsection 7c77#c71 ! %ortfall amortization base = ! fir/ plan ye> to :i* ! election "u p>agraph 7#a7 applies %all be ! fund+ %ortfall ( su* plan = su* plan ye> 7det]m9$ us+ ! int]e/ rates z modifi$ "u subp>agraph 7,a774 7,c7 ,det]m9ation ( %ortfall amortization in/allm5ts 7i7 #cj-ye> p]iod ,subp>agraphs 7,a7 & 7,b7 ( subsection 7c77#b7 %all be appli$ by sub/itut+ #cj-plan-ye> = #g-plan-ye> ea* place x appe>s4 7ii7 ,no special election ,! election "u subp>agraph 7,d7 ( subsection 7c77#b7 %all n apply to any plan ye> to :i* ! election "u p>agraph 7#a7 applies4 7,d7 ,exemption f at-risk treatm5t ,subsection 7i7 %all n apply4 7#d7 ,community newspap] plan ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m community newspap] plan means a plan to :i* ?is section applies ma9ta9$ by an employ] :i*1 z ( ,decemb] #ca1 #bjag-- 7i7 publi%es & di/ributes daily1 ei!r electronically or 9 pr9t$ =m-- 7,i7 a community newspap]1 or 7,,ii7 #a or m community newspap]s 9 ! same ,/ate1 7ii7 is n a company ! /ock ( :i* is publicly trad$ 7on a /ock ex*ange or 9 an ov]-!-c\nt] m>ket71 & is n controll$1 directly or indirectly1 by su* a company1 7iii7 is controll$1 directly or indirectly-- 7,i7 by #a or m p]sons resid+ prim>ily 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 7,,ii7 = n less ?an #cj ye>s by individuals :o are memb]s ( ! same family1 7,,iii7 by a tru/ creat$ or organiz$ 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 ! sole tru/ees ( :i* are p]sons describ$ 9 subclause 7,i7 or 7,,ii71 7,,iv7 by an entity :i* is describ$ 9 section #eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf & exempt f taxation "u section #eja7;a7 ( su* ,code1 :i* is organiz$ & op]at$ 9 ! ,/ate 9 :i* ! community newspap] is publi%$1 & ! prim>y purpose ( :i* is to b5efit communities 9 su* ,/ate1 or 7,v7 by a comb9ation ( p]sons describ$ 9 subclause 7,i71 7,,iii71 or 7,,iv71 & 7iv7 does n control1 directly or indirectly1 any newspap] 9 any o!r ,/ate4 7,b7 ,community newspap] ,! t]m community newspap] means a newspap] :i* prim>ily s]ves a metropolitan /ati/ical area1 z det]m9$ by ! ,(fice ( ,managem5t & ,budget1 ) a population ( n less ?an #ajj1jjj4 7,c7 ,control ,a p]son %all be treat$ z controll$ by ano!r p]son if su* o!r p]son possesses1 directly or indirectly1 ! p[] to direct or cause ! direction & managem5t ( su* p]son 7includ+ ! p[] to elect a majority ( ! memb]s ( ! bo>d ( directors ( su* p]son7 ?r\gh ! own]%ip ( vot+ securities4 7#e7 ,controll$ gr\p ,= purposes ( ?is subsection1 ! t]m controll$ gr\p means all p]sons treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf z ( ! date ( ! enactm5t ( ?is subsection4 7#f7 ,effect on premium rate calculation ,not)/&+ any o!r provision ( law or any regulation issu$ by ! ,p5sion ,b5efit ,gu>anty ,corporation1 9 ! case ( a plan = :i* an election is made to apply ! alt]native /&>ds describ$ 9 p>agraph 7#c71 ! additional premium "u section #djjf7;a77#c77;,e7 %all be det]m9$ z if su* election _h n be5 made4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s end+ aft] ,decemb] #ca1 #bjag4 #aaf4 ,treat+ exclud$ difficulty ( c>e paym5ts z comp5sation = det]m9+ retirem5t contribution limitations 7a7 ,individual retirem5t acc\nts 7#a7 ,9 g5]al ,section #djh7o7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,special rule = difficulty ( c>e paym5ts exclud$ f gross income ,9 ! case ( an individual :o = a taxable ye> excludes f gross income "u section #aca a qualifi$ fo/] c>e paym5t :i* is a difficulty ( c>e paym5t1 if-- 7,a7 ! d$uctible am\nt 9 effect = ! taxable ye> "u subsection 7b71 exce$s 7,b7 ! am\nt ( comp5sation includible 9 ! individual's gross income = ! taxable ye>1 ! individual may elect to increase ! nond$uctible limit "u p>agraph 7#b7 = ! taxable ye> by an am\nt equal to ! less] ( su* excess or ! am\nt s exclud$4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to contributions aft] ! date ( ! enactm5t ( ?is ,act4 7b7 ,def9$ contribution plans 7#a7 ,9 g5]al ,section #dae7;c7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#h7 ,special rule = difficulty ( c>e paym5ts exclud$ f gross income 7,a7 ,9 g5]al ,= purposes ( p>agraph 7#a77;,b71 9 ! case ( an individual :o = a taxable ye> excludes f gross income "u section #aca a qualifi$ fo/] c>e paym5t :i* is a difficulty ( c>e paym5t1 ! p>ticipant's comp5sation1 or e>n$ income1 z ! case may be1 %all be increas$ by ! am\nt s exclud$4 7,b7 ,contributions allocable to difficulty ( c>e paym5ts treat$ z aft]-tax ,any contribution by ! p>ticipant :i* is all[able due to su* increase-- 7i7 %all be treat$ = purposes ( ?is title z inve/m5t 9 ! contract1 & 7ii7 %all n cause a plan 7& any arrangem5t :i* is "p ( su* plan7 to be treat$ z fail+ to meet any requirem5ts ( ?is *apt] solely by reason ( all[+ any su* contributions4 4 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 ,,ii ,adm9i/rative improvem5ts #bja4 ,plan adopt$ by fil+ due date = ye> may be treat$ z 9 effect z ( close ( ye> 7a7 ,9 g5]al ,subsection 7b7 ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ retroactive *anges 9 plan4--,a /ock bonus & ins]t+ 8plan am5dm5ts4-- 7#a7 ,c]ta9 retroactive *anges 9 plan ,a /ock bonus 2 & 7#b7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,adoption ( plan ,if an employ] adopts a /ock bonus1 p5sion1 pr(it-%>+1 or annuity plan aft] ! close ( a taxable ye> b be=e ! "t prescrib$ by law = fil+ ! return ( ! employ] = ! taxable ye> 7includ+ ext5sions !re(71 ! employ] may elect to treat ! plan z hav+ be5 adopt$ z ( ! la/ day ( ! taxable ye>4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plans adopt$ = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #bjb4 ,comb9$ annual report = gr\p ( plans 7a7 ,9 g5]al ,! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor %all1 9 coop]ation1 modify ! returns requir$ "u section #fjeh ( ! ,int]nal ,rev5ue ,code ( #aihf & ! reports requir$ by section #ajd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7 s t all memb]s ( a gr\p ( plans describ$ 9 subsection 7c7 may file a s+le aggregat$ annual return or report satisfy+ ! requirem5ts ( bo? su* sections4 7b7 ,adm9i/rative requirem5ts ,9 develop+ ! consolidat$ return or report "u subsection 7a71 ! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor may require su* return or report to include any in=mation reg>d+ ea* plan 9 ! gr\p z su* ,secret>ies det]m9e is necess>y or appropriate = ! en=cem5t & adm9i/ration ( ! ,int]nal ,rev5ue ,code ( #aihf & ! ,employee ,retirem5t ,income ,security ,act ( #aigd & %all require su* in=mation z w enable a p>ticipant 9 a plan to id5tify any aggregat$ return or report fil$ ) respect to ! plan4 7c7 ,plans describ$ ,a gr\p ( plans is describ$ 9 ?is subsection if all plans 9 ! gr\p-- 7#a7 are individual acc\nt plans or def9$ contribution plans 7z def9$ 9 section #c7cd7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajjb7cd77 or 9 section #dad7;i7 ( ! ,int]nal ,rev5ue ,code ( #aihf72 7#b7 h-- 7,a7 ! same tru/ee 7z describ$ 9 section #djc7;a7 ( su* ,act 7#bi ,u4,s4,c4 #aajc7;a7772 7,b7 ! same "o or m nam$ fiduci>ies 7z describ$ 9 section #djb7;a7 ( su* ,act 7#bi ,u4,s4,c4 #aajb7;a7772 7,c7 ! same adm9i/rator 7z def9$ 9 section #c7af77;,a7 ( su* ,act 7#bi ,u4,s4,c4 #ajjb7af77;,a777 & plan adm9i/rator 7z def9$ 9 section #dad7;g7 ( ! ,int]nal ,rev5ue ,code ( #aihf72 & 7,d7 plan ye>s beg9n+ on ! same date2 & 7#c7 provide ! same inve/m5ts or inve/m5t options to p>ticipants & b5efici>ies4 ,a plan n subject to title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#b7 z "p ( a gr\p ( plans if ! same p]son t p]=ms ea* ( ! functions describ$ 9 su* p>agraph1 z applicable1 = all o!r plans 9 su* gr\p p]=ms ea* ( su* functions = su* plan4 7d7 ,cl>ification relat+ to electronic fil+ ( returns = def]r$ comp5sation plans 7#a7 ,9 g5]al ,section #fjaa7;e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,application ( num]ical limitation to returns relat+ to def]r$ comp5sation plans ,= purposes ( apply+ ! num]ical limitation "u p>agraph 7#b77;,a7 to any return requir$ "u section #fjeh1 in=mation reg>d+ ea* plan = :i* in=mation is provid$ on su* return %all be treat$ z a sep>ate return4 4 7#b7 ,effective date ,! am5dm5t made by p>agraph 7#a7 %all apply to returns requir$ to be fil$ ) respect to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 7e7 ,effective date ,! modification requir$ by subsection 7a7 %all be implem5t$ n lat] ?an ,janu>y #a1 #bjbb1 & %all apply to returns & reports = plan ye>s beg9n+ aft] ,decemb] #ca1 #bjba4 #bjc4 ,disclosure reg>d+ lifetime income 7a7 ,9 g5]al ,subp>agraph 7,b7 ( section #aje7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbe7;a77#b77 is am5d$-- 7#a7 9 clause 7i71 by /rik+ & at ! end2 7#b7 9 clause 7ii71 by /rik+ div]sification4 & ins]t+ div]sification1 &2 & 7#c7 by ins]t+ at ! end ! foll[+3 7iii7 ! lifetime income disclosure describ$ 9 subp>agraph 7,d77i74 ,9 ! case ( p5sion b5efit /atem5ts describ$ 9 clause 7i7 ( p>agraph 7#a77;,a71 a lifetime income disclosure "u clause 7iii7 ( ?is subp>agraph %all be requir$ to be includ$ 9 only "o p5sion b5efit /atem5t dur+ any "o #ab-mon? p]iod4 4 7b7 ,lifetime income ,p>agraph 7#b7 ( section #aje7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbe7;a77 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,lifetime income disclosure 7i7 ,9 g5]al 7,i7 ,disclosure ,a lifetime income disclosure %all set =? ! lifetime income /ream equival5t ( ! total b5efits accru$ ) respect to ! p>ticipant or b5efici>y4 7,,ii7 ,lifetime income /ream equival5t ( ! total b5efits accru$ ,= purposes ( ?is subp>agraph1 ! t]m lifetime income /ream equival5t ( ! total b5efits accru$ means ! am\nt ( mon?ly paym5ts ! p>ticipant or b5efici>y w\ld receive if ! total accru$ b5efits ( su* p>ticipant or b5efici>y 7 us$ to provide lifetime income /reams describ$ 9 subclause 7,,iii71 bas$ on assumptions specifi$ 9 rules prescrib$ by ! ,secret>y4 7,,iii7 ,lifetime income /reams ,! lifetime income /reams describ$ 9 ?is subclause are a qualifi$ jo9t & survivor annuity 7z def9$ 9 section #bje7;d771 bas$ on assumptions specifi$ 9 rules prescrib$ by ! ,secret>y1 includ+ ! assumption t ! p>ticipant or b5efici>y has a sp\se ( equal age1 & a s+le life annuity4 ,su* lifetime income /reams may h a t]m c]ta9 or o!r features to ! ext5t p]mitt$ "u rules prescrib$ by ! ,secret>y4 7ii7 ,model disclosure ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai1 ! ,secret>y %all issue a model lifetime income disclosure1 writt5 9 a mann] s z to be und]/ood by ! av]age plan p>ticipant1 :i*-- 7,i7 expla9s t ! lifetime income /ream equival5t is only provid$ z an illu/ration2 7,,ii7 expla9s t ! actual paym5ts "u ! lifetime income /ream describ$ 9 clause 7i77,,iii7 :i* may be pur*as$ ) ! total b5efits accru$ w dep5d on num]\s factors & may v>y sub/antially f ! lifetime income /ream equival5t 9 ! disclosures2 7,,iii7 expla9s ! assumptions ^u :i* ! lifetime income /ream equival5t 0 det]m9$2 & 7,,iv7 provides su* o!r simil> explanations z ! ,secret>y consid]s appropriate4 7iii7 ,assumptions & rules ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ! ,sett+ ,e ,community ,up = ,retirem5t ,enhancem5t ,act ( #bjai1 ! ,secret>y %all-- 7,i7 prescribe assumptions :i* adm9i/rators ( individual acc\nt plans may use 9 conv]t+ total accru$ b5efits into lifetime income /ream equival5ts = purposes ( ?is subp>agraph2 & 7,,ii7 issue int]im f9al rules "u clause 7i74 ,9 prescrib+ assumptions "u subclause 7,i71 ! ,secret>y may prescribe a s+le set ( specific assumptions 79 :i* case ! ,secret>y may issue tables or factors :i* facilitate su* conv]sions71 or ranges ( p]missible assumptions4 ,to ! ext5t t an accru$ b5efit is or may be inve/$ 9 a lifetime income /ream describ$ 9 clause 7i77,,iii71 ! assumptions prescrib$ "u subclause 7,i7 %all1 to ! ext5t appropriate1 p]mit adm9i/rators ( individual acc\nt plans to use ! am\nts payable "u su* lifetime income /ream z a lifetime income /ream equival5t4 7iv7 ,limitation on liability ,no plan fiduci>y1 plan sponsor1 or o!r p]son %all h any liability "u ?is title solely by reason ( ! provision ( lifetime income /ream equival5ts :i* are d]iv$ 9 accordance ) ! assumptions & rules describ$ 9 clause 7iii7 & :i* include ! explanations conta9$ 9 ! model lifetime income disclosure describ$ 9 clause 7ii74 ,?is clause %all apply )\t reg>d to :e!r ! provision ( su* lifetime income /ream equival5t is requir$ by subp>agraph 7,b77iii74 7v7 ,effective date ,! requirem5t 9 subp>agraph 7,b77iii7 %all apply to p5sion b5efit /atem5ts furni%$ m ?an #ab mon?s aft] ! late/ ( ! issuance by ! ,secret>y (-- 7,i7 int]im f9al rules "u clause 7i72 7,,ii7 ! model disclosure "u clause 7ii72 or 7,,iii7 ! assumptions "u clause 7iii74 4 #bjd4 ,fiduci>y safe h>bor = selection ( lifetime income provid] ,section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ by add+ at ! end ! foll[+3 7e7 ,safe h>bor = annuity selection 7#a7 ,9 g5]al ,) respect to ! selection ( an insur] = a gu>ante$ retirem5t income contract1 ! requirem5ts ( subsection 7a77#a77;,b7 w be deem$ to be satisfi$ if a fiduci>y-- 7,a7 engages 9 an objective1 ?or\gh1 & analytical se>* = ! purpose ( id5tify+ insur]s f :i* to pur*ase su* contracts2 7,b7 ) respect to ea* insur] id5tifi$ "u subp>agraph 7,a7-- 7i7 consid]s ! f9ancial capability ( su* insur] to satisfy its obligations "u ! gu>ante$ retirem5t income contract2 & 7ii7 consid]s ! co/ 7includ+ fees & commissions7 ( ! gu>ante$ retirem5t income contract (f]$ by ! insur] 9 relation to ! b5efits & product features ( ! contract & adm9i/rative s]vices to be provid$ "u su* contract2 & 7,c7 on ! basis ( su* consid]ation1 concludes t-- 7i7 at ! "t ( ! selection1 ! insur] is f9ancially capable ( satisfy+ its obligations "u ! gu>ante$ retirem5t income contract2 & 7ii7 ! relative co/ ( ! select$ gu>ante$ retirem5t income contract z describ$ 9 subp>agraph 7,b77ii7 is reasonable4 7#b7 ,f9ancial capability ( ! insur] ,a fiduci>y w be deem$ to satisfy ! requirem5ts ( p>agraphs 7#a77;,b77i7 & 7#a77;,c77i7 if-- 7,a7 ! fiduci>y obta9s writt5 repres5tations f ! insur] t-- 7i7 ! insur] is lic5s$ to (f] gu>ante$ retirem5t income contracts2 7ii7 ! insur]1 at ! "t ( selection & = ea* ( ! imm$iately prec$+ #g plan ye>s-- 7,i7 op]ates "u a c]tificate ( au?ority f ! insurance commission] ( its domicili>y ,/ate :i* has n be5 revok$ or susp5d$2 7,,ii7 has fil$ audit$ f9ancial /atem5ts 9 accordance ) ! laws ( its domicili>y ,/ate "u applicable /atutory acc\nt+ pr9ciples2 7,,iii7 ma9ta9s 7& has ma9ta9$7 res]ves :i* satisfies all ! /atutory requirem5ts ( all ,/ates :]e ! insur] does bus9ess2 & 7,,iv7 is n op]at+ "u an ord] ( sup]vision1 rehabilitation1 or liquidation2 7iii7 ! insur] und]goes1 at lea/ e #e ye>s1 a f9ancial exam9ation 7)9 ! mean+ ( ! law ( its domicili>y ,/ate7 by ! insurance commission] ( ! domicili>y ,/ate 7or repres5tative1 designee1 or o!r p>ty approv$ by su* commission]72 & 7iv7 ! insur] w notify ! fiduci>y ( any *ange 9 circum/ances occurr+ aft] ! provision ( ! repres5tations 9 clauses 7i71 7ii71 & 7iii7 :i* w\ld preclude ! insur] f mak+ su* repres5tations at ! "t ( issuance ( ! gu>ante$ retirem5t income contract2 & 7,b7 aft] receiv+ su* repres5tations & z ( ! "t ( selection1 ! fiduci>y has n receiv$ any notice describ$ 9 subp>agraph 7,a77iv7 & is 9 possession ( no o!r in=mation :i* w\ld cause ! fiduci>y to "q ! repres5tations provid$4 7#c7 ,no requirem5t to select l[e/ co/ ,no?+ 9 ?is subsection %all be con/ru$ to require a fiduci>y to select ! l[e/ co/ contract4 ,a fiduci>y may consid] ! value ( a contract1 includ+ features & b5efits ( ! contract & attributes ( ! insur] 7includ+1 )\t limitation1 ! insur]'s f9ancial /r5g?7 9 conjunction ) ! co/ ( ! contract4 7#d7 ,"t ( selection 7,a7 ,9 g5]al ,= purposes ( ?is subsection1 ! "t ( selection is-- 7i7 ! "t t ! insur] & ! contract are select$ = di/ribution ( b5efits to a specific p>ticipant or b5efici>y2 or 7ii7 if ! fiduci>y p]iodically reviews ! cont9u+ appropriat5ess ( ! conclusion describ$ 9 p>agraph 7#a77;,c7 ) respect to a select$ insur]1 tak+ into acc\nt ! consid]ations describ$ 9 su* p>agraph1 ! "t t ! insur] & ! contract are select$ to provide b5efits at future dates to p>ticipants or b5efici>ies "u ! plan4 ,no?+ 9 ! prec$+ s5t5ce %all be con/ru$ to require ! fiduci>y to review ! appropriat5ess ( a selection aft] ! pur*ase ( a contract = a p>ticipant or b5efici>y4 7,b7 ,p]iodic review ,a fiduci>y w be deem$ to h conduct$ ! p]iodic review describ$ 9 subp>agraph 7,a77ii7 if ! fiduci>y obta9s ! writt5 repres5tations describ$ 9 clauses 7i71 7ii71 & 7iii7 ( p>agraph 7#b77;,a7 f ! insur] on an annual basis1 unless ! fiduci>y receives any notice describ$ 9 p>agraph 7#b77;,a77iv7 or o!rwise becomes aw>e ( facts t w\ld cause ! fiduci>y to "q su* repres5tations4 7#e7 ,limit$ liability ,a fiduci>y :i* satisfies ! requirem5ts ( ?is subsection %all n be liable foll[+ ! di/ribution ( any b5efit1 or ! inve/m5t by or on behalf ( a p>ticipant or b5efici>y pursuant to ! select$ gu>ante$ retirem5t income contract1 = any losses t may result to ! p>ticipant or b5efici>y due to an insur]'s inability to satisfy its f9ancial obligations "u ! t]ms ( su* contract4 7#f7 ,def9itions ,= purposes ( ?is subsection-- 7,a7 ,insur] ,! t]m insur] means an insurance company1 insurance s]vice1 or insurance organization1 includ+ affiliates ( su* companies4 7,b7 ,gu>ante$ retirem5t income contract ,! t]m gu>ante$ retirem5t income contract means an annuity contract = a fix$ t]m or a contract 7or provision or feature !re(7 :i* provides gu>ante$ b5efits annually 7or m frequ5tly7 = at lea/ ! rema9d] ( ! life ( ! p>ticipant or ! jo9t lives ( ! p>ticipant & ! p>ticipant's designat$ b5efici>y z "p ( an individual acc\nt plan4 4 #bje4 ,modification ( nondiscrim9ation rules to protect old]1 long] s]vice p>ticipants 7a7 ,9 g5]al ,section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by r$esignat+ subsection 7o7 z subsection 7p72 & 7#b7 by ins]t+ aft] subsection 7n7 ! foll[+ new subsection3 7o7 ,special rules = apply+ nondiscrim9ation rules to protect old]1 long] s]vice & gr&fa!r$ p>ticipants 7#a7 ,te/+ ( def9$ b5efit plans ) clos$ classes ( p>ticipants 7,a7 ,b5efits1 rights1 or features provid$ to clos$ classes ,a def9$ b5efit plan :i* provides b5efits1 rights1 or features to a clos$ class ( p>ticipants %all n fail to satisfy ! requirem5ts ( subsection 7a77#d7 by reason ( ! composition ( su* clos$ class or ! b5efits1 rights1 or features provid$ to su* clos$ class1 if-- 7i7 = ! plan ye> z ( :i* ! class closes & ! #b succe$+ plan ye>s1 su* b5efits1 rights1 & features satisfy ! requirem5ts ( subsection 7a77#d7 7)\t reg>d to ?is subp>agraph b tak+ into acc\nt ! rules ( subp>agraph 7,i771 7ii7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5t :i* modifies ! clos$ class or ! b5efits1 rights1 & features provid$ to su* clos$ class does n discrim9ate significantly 9 favor ( highly comp5sat$ employees1 & 7iii7 ! class 0 clos$ be=e ,april #e1 #bjag1 or ! plan is describ$ 9 subp>agraph 7,c74 7,b7 ,aggregate te/+ ) def9$ contribution plans p]mitt$ on a b5efits basis 7i7 ,9 g5]al ,= purposes ( det]m9+ compliance ) subsection 7a77#d7 & section #daj7;b71 a def9$ b5efit plan describ$ 9 clause 7iii7 may be aggregat$ & te/$ on a b5efits basis ) #a or m def9$ contribution plans1 includ+ ) ! portion ( #a or m def9$ contribution plans :i*-- 7,i7 provides mat*+ contributions 7z def9$ 9 subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts describ$ 9 section #djc7;b7 :i* are pur*as$ ) mat*+ contributions or nonelective contributions1 or 7,,iii7 consi/s ( an employee /ock own]%ip plan 7)9 ! mean+ ( section #dige7;e77#g77 or a tax cr$it employee /ock own]%ip plan 7)9 ! mean+ ( section #dji7;a774 7ii7 ,special rules = mat*+ contributions ,= purposes ( clause 7i71 if a def9$ b5efit plan is aggregat$ ) a portion ( a def9$ contribution plan provid+ mat*+ contributions-- 7,i7 su* def9$ b5efit plan mu/ also be aggregat$ ) any portion ( su* def9$ contribution plan :i* provides elective def]rals describ$ 9 subp>agraph 7,a7 or 7,c7 ( section #djb7;g77#c71 & 7,,ii7 su* mat*+ contributions %all be treat$ 9 ! same mann] z nonelective contributions1 includ+ = purposes ( apply+ ! rules ( subsection 7l74 7iii7 ,plans describ$ ,a def9$ b5efit plan is describ$ 9 ?is clause if-- 7,i7 ! plan provides b5efits to a clos$ class ( p>ticipants1 7,,ii7 = ! plan ye> z ( :i* ! class closes & ! #b succe$+ plan ye>s1 ! plan satisfies ! requirem5ts ( section #daj7;b7 & subsection 7a77#d7 7)\t reg>d to ?is subp>agraph b tak+ into acc\nt ! rules ( subp>agraph 7,i771 7,,iii7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5t :i* modifies ! clos$ class or ! b5efits provid$ to su* clos$ class does n discrim9ate significantly 9 favor ( highly comp5sat$ employees1 & 7,,iv7 ! class 0 clos$ be=e ,april #e1 #bjag1 or ! plan is describ$ 9 subp>agraph 7,c74 7,c7 ,plans describ$ ,a plan is describ$ 9 ?is subp>agraph if1 tak+ into acc\nt any pr$ecessor plan-- 7i7 su* plan has be5 9 effect = at lea/ #e ye>s z ( ! date ! class is clos$1 & 7ii7 dur+ ! #e-ye> p]iod prec$+ ! date ! class is clos$1 !re has n be5 a sub/antial increase 9 ! cov]age or value ( ! b5efits1 rights1 or features describ$ 9 subp>agraph 7,a7 or 9 ! cov]age or b5efits "u ! plan describ$ 9 subp>agraph 7,b77iii7 7:i*ev] is applicable74 7,d7 ,det]m9ation ( sub/antial increase = b5efits1 rights1 & features ,9 apply+ subp>agraph 7,c77ii7 = purposes ( subp>agraph 7,a77iii71 a plan %all be treat$ z hav+ _h a sub/antial increase 9 cov]age or value ( ! b5efits1 rights1 or features describ$ 9 subp>agraph 7,a7 dur+ ! applicable #e-ye> p]iod only if1 dur+ su* p]iod-- 7i7 ! numb] ( p>ticipants cov]$ by su* b5efits1 rights1 or features on ! date su* p]iod ends is m ?an #ej p]c5t great] ?an ! numb] ( su* p>ticipants on ! fir/ day ( ! plan ye> 9 :i* su* p]iod began1 or 7ii7 su* b5efits1 rights1 & features h be5 modifi$ by #a or m plan am5dm5ts 9 su* a way t1 z ( ! date ! class is clos$1 ! value ( su* b5efits1 rights1 & features to ! clos$ class z a :ole is sub/antially great] ?an ! value z ( ! fir/ day ( su* #e-ye> p]iod1 solely z a result ( su* am5dm5ts4 7,e7 ,det]m9ation ( sub/antial increase = aggregate te/+ on b5efits basis ,9 apply+ subp>agraph 7,c77ii7 = purposes ( subp>agraph 7,b77iii77,,iv71 a plan %all be treat$ z hav+ _h a sub/antial increase 9 cov]age or b5efits dur+ ! applicable #e-ye> p]iod only if1 dur+ su* p]iod-- 7i7 ! numb] ( p>ticipants b5efitt+ "u ! plan on ! date su* p]iod ends is m ?an #ej p]c5t great] ?an ! numb] ( su* p>ticipants on ! fir/ day ( ! plan ye> 9 :i* su* p]iod began1 or 7ii7 ! av]age b5efit provid$ to su* p>ticipants on ! date su* p]iod ends is m ?an #ej p]c5t great] ?an ! av]age b5efit provid$ on ! fir/ day ( ! plan ye> 9 :i* su* p]iod began4 7,f7 ,c]ta9 employees disreg>d$ ,= purposes ( subp>agraphs 7,d7 & 7,e71 any increase 9 cov]age or value or 9 cov]age or b5efits1 :i*ev] is applicable1 :i* is attributable to su* cov]age & value or cov]age & b5efits provid$ to employees-- 7i7 :o became p>ticipants z a result ( a m]g]1 acquisition1 or simil> ev5t :i* occurr$ dur+ ! #g-ye> p]iod prec$+ ! date ! class is clos$1 or 7ii7 :o became p>ticipants by reason ( a m]g] ( ! plan ) ano!r plan :i* _h be5 9 effect = at lea/ #e ye>s z ( ! date ( ! m]g]1 %all be disreg>d$1 except t clause 7ii7 %all apply = purposes ( subp>agraph 7,d7 only if1 "u ! m]g]1 ! b5efits1 rights1 or features "u #a plan are con=m$ to ! b5efits1 rights1 or features ( ! o!r plan prospectively4 7,g7 ,rules relat+ to av]age b5efit ,= purposes ( subp>agraph 7,e7-- 7i7 ! av]age b5efit provid$ to p>ticipants "u ! plan w be treat$ z hav+ rema9$ ! same betwe5 ! #b dates describ$ 9 subp>agraph 7,e77ii7 if ! b5efit =mula applicable to su* p>ticipants has n *ang$ betwe5 su* dates1 & 7ii7 if ! b5efit =mula applicable to #a or m p>ticipants "u ! plan has *ang$ betwe5 su* #b dates1 !n ! av]age b5efit "u ! plan %all be consid]$ to h increas$ by m ?an #ej p]c5t only if-- 7,i7 ! total am\nt det]m9$ "u section #dcj7;b77#a77;,a77i7 = all p>ticipants b5efitt+ "u ! plan = ! plan ye> 9 :i* ! #e-ye> p]iod describ$ 9 subp>agraph 7,e7 ends1 exce$s 7,,ii7 ! total am\nt det]m9$ "u section #dcj7;b77#a77;,a77i7 = all su* p>ticipants = su* plan ye>1 by us+ ! b5efit =mula 9 effect = ea* su* p>ticipant = ! fir/ plan ye> 9 su* #e-ye> p]iod1 by m ?an #ej p]c5t4 ,9 ! case ( a ,,csec plan 7z def9$ 9 section #dad7y771 ! normal co/ ( ! plan 7z det]m9$ "u section #dcc7;j77#a77;,b77 %all be us$ 9 lieu ( ! am\nt det]m9$ "u section #dcj7;b77#a77;,a77i74 7,h7 ,treatm5t z s+le plan ,= purposes ( subp>agraphs 7,e7 & 7,g71 a plan describ$ 9 section #dac7;c7 %all be treat$ z a s+le plan r ?an z sep>ate plans ma9ta9$ by ea* employ] 9 ! plan4 7,i7 ,special rules ,= purposes ( subp>agraphs 7,a77i7 & 7,b77iii77,,ii71 ! foll[+ rules %all apply3 7i7 ,9 apply+ section #daj7;b77#f77;,c71 ! clos+ ( ! class ( p>ticipants %all n be treat$ z a significant *ange 9 cov]age "u section #daj7;b77#f77;,c77i77,,ii74 7ii7 #b or m plans %all n fail to be eligible to be aggregat$ & treat$ z a s+le plan solely by reason ( hav+ diff]5t plan ye>s4 7iii7 ,*anges 9 ! employee population %all be disreg>d$ to ! ext5t attributable to individuals :o become employees or cease to be employees1 aft] ! date ! class is clos$1 by reason ( a m]g]1 acquisition1 dive/iture1 or simil> ev5t4 7iv7 ,aggregation & all o!r te/+ me?odologies o!rwise applicable "u subsection 7a77#d7 & section #daj7;b7 may be tak5 into acc\nt4 ,! rule ( clause 7ii7 %all also apply = purposes ( det]m9+ :e!r plans to :i* subp>agraph 7,b77i7 applies may be aggregat$ & treat$ z #a plan = purposes ( det]m9+ :e!r su* plans meet ! requirem5ts ( subsection 7a77#d7 & section #daj7;b74 7,j7 ,spun-(f plans ,= purposes ( ?is p>agraph1 if a portion ( a def9$ b5efit plan describ$ 9 subp>agraph 7,a7 or 7,b77iii7 is spun (f to ano!r employ] & ! spun-(f plan cont9ues to satisfy ! requirem5ts (-- 7i7 subp>agraph 7,a77i7 or 7,b77iii77,,ii71 :i*ev] is applicable1 if ! orig9al plan 0 /ill )9 ! #c-ye> p]iod describ$ 9 su* subp>agraph at ! "t ( ! sp9 (f1 & 7ii7 subp>agraph 7,a77ii7 or 7,b77iii77,,iii71 :i*ev] is applicable1 ! treatm5t "u subp>agraph 7,a7 or 7,b7 ( ! spun-(f plan %all cont9ue ) respect to su* o!r employ]4 7#b7 ,te/+ ( def9$ contribution plans 7,a7 ,te/+ on a b5efits basis ,a def9$ contribution plan %all be p]mitt$ to be te/$ on a b5efits basis if-- 7i7 su* def9$ contribution plan provides make-:ole contributions to a clos$ class ( p>ticipants ^: accruals "u a def9$ b5efit plan h be5 r$uc$ or elim9at$1 7ii7 = ! plan ye> ( ! def9$ contribution plan z ( :i* ! class eligible to receive su* make-:ole contributions closes & ! #b succe$+ plan ye>s1 su* clos$ class ( p>ticipants satisfies ! requirem5ts ( section #daj7;b77#b77;,a77i7 7det]m9$ by apply+ ! rules ( p>agraph 7#a77;,i771 7iii7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5t to ! def9$ contribution plan :i* modifies ! clos$ class or ! allocations1 b5efits1 rights1 & features provid$ to su* clos$ class does n discrim9ate significantly 9 favor ( highly comp5sat$ employees1 & 7iv7 ! class 0 clos$ be=e ,april #e1 #bjag1 or ! def9$ b5efit plan "u clause 7i7 is describ$ 9 p>agraph 7#a77;,c7 7z appli$ = purposes ( p>agraph 7#a77;,b77iii77,,iv774 7,b7 ,aggregation ) plans includ+ mat*+ contributions 7i7 ,9 g5]al ,) respect to #a or m def9$ contribution plans describ$ 9 subp>agraph 7,a71 = purposes ( det]m9+ compliance ) subsection 7a77#d7 & section #daj7;b71 ! portion ( su* plans :i* provides make-:ole contributions or o!r nonelective contributions may be aggregat$ & te/$ on a b5efits basis ) ! portion ( #a or m o!r def9$ contribution plans :i*-- 7,i7 provides mat*+ contributions 7z def9$ 9 subsection 7m77#d77;,a771 7,,ii7 provides annuity contracts describ$ 9 section #djc7;b7 :i* are pur*as$ ) mat*+ contributions or nonelective contributions1 or 7,,iii7 consi/s ( an employee /ock own]%ip plan 7)9 ! mean+ ( section #dige7;e77#g77 or a tax cr$it employee /ock own]%ip plan 7)9 ! mean+ ( section #dji7;a774 7ii7 ,special rules = mat*+ contributions ,rules simil> to ! rules ( p>agraph 7#a77;,b77ii7 %all apply = purposes ( clause 7i74 7,c7 ,special rules = te/+ def9$ contribution plan features provid+ mat*+ contributions to c]ta9 old]1 long] s]vice p>ticipants ,9 ! case ( a def9$ contribution plan :i* provides b5efits1 rights1 or features to a clos$ class ( p>ticipants ^: accruals "u a def9$ b5efit plan h be5 r$uc$ or elim9at$1 ! plan %all n fail to satisfy ! requirem5ts ( subsection 7a77#d7 solely by reason ( ! composition ( ! clos$ class or ! b5efits1 rights1 or features provid$ to su* clos$ class if ! def9$ contribution plan & def9$ b5efit plan o!rwise meet ! requirem5ts ( subp>agraph 7,a7 b = ! fact t ! make-:ole contributions "u ! def9$ contribution plan are made 9 :ole or 9 "p ?r\gh mat*+ contributions4 7,d7 ,spun-(f plans ,= purposes ( ?is p>agraph1 if a portion ( a def9$ contribution plan describ$ 9 subp>agraph 7,a7 or 7,c7 is spun (f to ano!r employ]1 ! treatm5t "u subp>agraph 7,a7 or 7,c7 ( ! spun-(f plan %all cont9ue ) respect to ! o!r employ] if su* plan cont9ues to comply ) ! requirem5ts ( clauses 7ii7 7if ! orig9al plan 0 /ill )9 ! #c-ye> p]iod describ$ 9 su* clause at ! "t ( ! sp9 (f7 & 7iii7 ( subp>agraph 7,a71 z det]m9$ = purposes ( subp>agraph 7,a7 or 7,c71 :i*ev] is applicable4 7#c7 ,def9itions & special rule ,= purposes ( ?is subsection-- 7,a7 ,make-:ole contributions ,except z o!rwise provid$ 9 p>agraph 7#b77;,c71 ! t]m make-:ole contributions means nonelective allocations = ea* employee 9 ! class :i* are reasonably calculat$1 9 a consi/5t mann]1 to replace "s or all ( ! retirem5t b5efits :i* ! employee w\ld h receiv$ "u ! def9$ b5efit plan & any o!r plan or qualifi$ ca% or def]r$ arrangem5t "u subsection 7k77#b7 if no *ange _h be5 made to su* def9$ b5efit plan & su* o!r plan or arrangem5t4 ,= purposes ( ! prec$+ s5t5ce1 consi/5cy %all n be requir$ ) respect to employees :o 7 subject to diff]5t b5efit =mulas "u ! def9$ b5efit plan4 7,b7 ,ref]5ces to clos$ class ( p>ticipants ,ref]5ces to a clos$ class ( p>ticipants & simil> ref]5ces to a clos$ class %all include arrangem5ts "u :i* #a or m classes ( p>ticipants are clos$1 except t #a or m classes ( p>ticipants clos$ on diff]5t dates %all n be aggregat$ = purposes ( det]m9+ ! date any su* class 0 clos$4 7,c7 ,highly comp5sat$ employee ,! t]m highly comp5sat$ employee has ! mean+ giv5 su* t]m 9 section #dad7q74 4 7b7 ,p>ticipation requirem5ts ,p>agraph 7#bf7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,protect$ p>ticipants 7i7 ,9 g5]al ,a plan %all be deem$ to satisfy ! requirem5ts ( subp>agraph 7,a7 if-- 7,i7 ! plan is am5d$-- 7aa7 to cease all b5efit accruals1 or 7bb7 to provide future b5efit accruals only to a clos$ class ( p>ticipants1 7,,ii7 ! plan satisfies subp>agraph 7,a7 7)\t reg>d to ?is subp>agraph7 z ( ! effective date ( ! am5dm5t1 & 7,,iii7 ! am5dm5t 0 adopt$ be=e ,april #e1 #bjag1 or ! plan is describ$ 9 clause 7ii74 7ii7 ,plans describ$ ,a plan is describ$ 9 ?is clause if ! plan w\ld be describ$ 9 subsection 7o77#a77;,c71 z appli$ = purposes ( subsection 7o77#a77;,b77iii77,,iv7 & by treat+ ! effective date ( ! am5dm5t z ! date ! class 0 clos$ = purposes ( subsection 7o77#a77;,c74 7iii7 ,special rules ,= purposes ( clause 7i77,,ii71 9 apply+ section #daj7;b77#f77;,c71 ! am5dm5ts describ$ 9 clause 7i7 %all n be treat$ z a significant *ange 9 cov]age "u section #daj7;b77#f77;,c77i77,,ii74 7iv7 ,spun-(f plans ,= purposes ( ?is subp>agraph1 if a portion ( a plan describ$ 9 clause 7i7 is spun (f to ano!r employ]1 ! treatm5t "u clause 7i7 ( ! spun-(f plan %all cont9ue ) respect to ! o!r employ]4 4 7c7 ,effective date 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act1 )\t reg>d to :e!r any plan modifications ref]r$ to 9 su* am5dm5ts are adopt$ or effective be=e1 on1 or aft] su* date ( enactm5t4 7#b7 ,special rules 7,a7 ,election ( e>li] application ,at ! election ( ! plan sponsor1 ! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 7,b7 ,clos$ classes ( p>ticipants ,= purposes ( p>agraphs 7#a77;,a77iii71 7#a77;,b77iii77,,iv71 & 7#b77;,a77iv7 ( section #dja7o7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is section71 a clos$ class ( p>ticipants %all be treat$ z be+ clos$ be=e ,april #e1 #bjag1 if ! plan sponsor's int5tion to create su* clos$ class is reflect$ 9 =mal writt5 docum5ts & communicat$ to p>ticipants be=e su* date4 7,c7 ,c]ta9 po/-enactm5t plan am5dm5ts ,a plan %all n be treat$ z fail+ to be eligible = ! application ( section #dja7o77#a77;,a71 #dja7o77#a77;,b77iii71 or #dja7;a77#bf7 ( su* ,code 7z add$ by ?is section7 to su* plan solely because 9 ! case (-- 7i7 su* section #dja7o77#a77;,a71 ! plan 0 am5d$ be=e ! date ( ! enactm5t ( ?is ,act to elim9ate #a or m b5efits1 rights1 or features1 & is fur!r am5d$ aft] su* date ( enactm5t to provide su* previ\sly elim9at$ b5efits1 rights1 or features to a clos$ class ( p>ticipants1 or 7ii7 su* section #dja7o77#a77;,b77iii7 or section #dja7;a77#bf71 ! plan 0 am5d$ be=e ! date ( ! enactm5t ( ?is ,act to cease all b5efit accruals1 & is fur!r am5d$ aft] su* date ( enactm5t to provide b5efit accruals to a clos$ class ( p>ticipants4 ,any su* section %all only apply if ! plan o!rwise meets ! requirem5ts ( su* section & 9 apply+ su* section1 ! date ! class ( p>ticipants is clos$ %all be ! effective date ( ! lat] am5dm5t4 #bjf4 ,modification ( ,,pbgc premiums = ,,csec plans 7a7 ,flat rate premium ,subp>agraph 7,a7 ( section #djjf7;a77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is am5d$-- 7#a7 9 clause 7i71 by /rik+ plan1 & ins]t+ plan o!r ?an a ,,csec plan 7z def9$ 9 section #baj7;f77#a772 7#b7 9 clause 7v71 by /rik+ or at ! end2 7#c7 9 clause 7vi71 by /rik+ ! p]iod at ! end & ins]t+ 1 or2 & 7#d7 by add+ at ! end ! foll[+ new clause3 7vii7 9 ! case ( a ,,csec plan 7z def9$ 9 section #baj7;f77#a771 = plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah1 = ea* individual :o is a p>ticipant 9 su* plan dur+ ! plan ye> an am\nt equal to ! sum (-- 7,i7 ! additional premium 7if any7 det]m9$ "u subp>agraph 7,e71 & 7,,ii7 #ai4 4 7b7 ,v>iable rate premium 7#a7 ,unfund$ ve/$ b5efits 7,a7 ,9 g5]al ,subp>agraph 7,e7 ( section #djjf7;a77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acjf7;a77#c77 is am5d$ by add+ at ! end ! foll[+ new clause3 7v7 ,= purposes ( clause 7ii71 9 ! case ( a ,,csec plan 7z def9$ 9 section #baj7;f77#a771 ! t]m unfund$ ve/$ b5efits means1 = plan ye>s beg9n+ aft] ,decemb] #ca1 #bjah1 ! excess 7if any7 (-- 7,i7 ! fund+ liability ( ! plan z det]m9$ "u section #cjf7;j77#e77;,c7 = ! plan ye> by only tak+ into acc\nt ve/$ b5efits1 ov] 7,,ii7 ! fair m>ket value ( plan assets = ! plan ye> :i* are held by ! plan on ! valuation date4 4 7,b7 ,con=m+ am5dm5t ,clause 7iii7 ( section #djjf7;a77#c77;,e7 ( su* ,act 7#bi ,u4,s4,c4 #acjf7;a77#c77;,e77 is am5d$ by /rik+ ,= purposes & ins]t+ ,except z provid$ 9 clause 7v71 = purposes4 7#b7 ,applicable doll> am\nt 7,a7 ,9 g5]al ,p>agraph 7#h7 ( section #djjf7;a7 ( su* ,act 7#bi ,u4,s4,c4 #acjf7;a77 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,,csec plans ,9 ! case ( a ,,csec plan 7z def9$ 9 section #baj7;f77#a771 ! applicable doll> am\nt %all be #i4 4 7,b7 ,con=m+ am5dm5t ,subp>agraph 7,a7 ( section #djjf7;a77#h7 ( su* ,act 7#bi ,u4,s4,c4 #acjf7;a77#h77 is am5d$ by /rik+ 7,b7 & 7,c7 & ins]t+ 7,b71 7,c71 & 7,e74 ,,iii ,o!r b5efits #cja4 ,b5efits provid$ to volunte] firefight]s & em]g5cy m$ical respond]s 7a7 ,increase 9 doll> limitation on qualifi$ paym5ts ,subp>agraph 7,b7 ( section #aci;,b7c77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #cj & ins]t+ #ej4 7b7 ,ext5sion ,section #aci;,b7d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ beg9n+ aft] ,decemb] #ca1 #bjaj4 & ins]t+ 8beg9n+-- 7#a7 aft] ,decemb] #ca1 #bjaj1 & be=e ,janu>y #a1 #bjbj1 or 7#b7 aft] ,decemb] #ca1 #bjbj4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4 #cjb4 ,expansion ( section #ebi plans 7a7 ,di/ributions = c]ta9 exp5ses associat$ ) regi/]$ appr5tice%ip programs ,section #ebi7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#h7 ,treatm5t ( c]ta9 exp5ses associat$ ) regi/]$ appr5tice%ip programs ,any ref]5ce 9 ?is subsection to ! t]m qualifi$ high] education exp5se %all include a ref]5ce to exp5ses = fees1 books1 supplies1 & equipm5t requir$ = ! p>ticipation ( a designat$ b5efici>y 9 an appr5tice%ip program regi/]$ & c]tifi$ ) ! ,secret>y ( ,labor "u section #a ( ! ,national ,appr5tice%ip ,act 7#bi ,u4,s4,c4 #ej74 4 7b7 ,di/ributions = qualifi$ education loan repaym5ts 7#a7 ,9 g5]al ,section #ebi7;c7 ( su* ,code1 z am5d$ by subsection 7a71 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#i7 ,treatm5t ( qualifi$ education loan repaym5ts 7,a7 ,9 g5]al ,any ref]5ce 9 ?is subsection to ! t]m qualifi$ high] education exp5se %all include a ref]5ce to am\nts paid z pr9cipal or int]e/ on any qualifi$ education loan 7z def9$ 9 section #bba7;d77 ( ! designat$ b5efici>y or a sibl+ ( ! designat$ b5efici>y4 7,b7 ,limitation ,! am\nt ( di/ributions treat$ z a qualifi$ high] education exp5se "u ?is p>agraph ) respect to ! loans ( any individual %all n exce$ #aj1jjj 7r$uc$ by ! am\nt ( di/ributions s treat$ = all prior taxable ye>s74 7,c7 ,special rules = sibl+s ( ! designat$ b5efici>y 7i7 ,sep>ate acc\nt+ ,= purposes ( subp>agraph 7,b7 & subsection 7d71 am\nts treat$ z a qualifi$ high] education exp5se ) respect to ! loans ( a sibl+ ( ! designat$ b5efici>y %all be tak5 into acc\nt ) respect to su* sibl+ & n ) respect to su* designat$ b5efici>y4 7ii7 ,sibl+ def9$ ,= purposes ( ?is p>agraph1 ! t]m sibl+ means an individual :o be>s a relation%ip to ! designat$ b5efici>y :i* is describ$ 9 section #aeb7;d77#b77;,b74 4 7#b7 ,coord9ation ) d$uction = /ud5t loan int]e/ ,section #bba7;e77#a7 ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,! d$uction o!rwise all[able "u subsection 7a7 7prior to ! application ( subsection 7b77 to ! taxpay] = any taxable ye> %all be r$uc$ 7b n bel[ z]o7 by s mu* ( ! di/ributions treat$ z a qualifi$ high] education exp5se "u section #ebi7;c77#i7 ) respect to loans ( ! taxpay] z w\ld be includible 9 gross income "u section #ebi7;c77#c77;,a7 = su* taxable ye> b = su* treatm5t44 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjah4 ,,iv ,rev5ue provisions #dja4 ,modification ( requir$ di/ribution rules = designat$ b5efici>ies 7a7 ,modification ( rules :]e employee dies be=e entire di/ribution 7#a7 ,9 g5]al ,section #dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,h7 ,special rules = c]ta9 def9$ contribution plans ,9 ! case ( a def9$ contribution plan1 if an employee dies be=e ! di/ribution ( ! employee's entire int]e/-- 7i7 ,9 g5]al ,except 9 ! case ( a b5efici>y :o is n a designat$ b5efici>y1 subp>agraph 7,b77ii7-- 7,i7 %all be appli$ by sub/itut+ #aj ye>s = #e ye>s1 & 7,,ii7 %all apply :e!r or n di/ributions ( ! employee's int]e/s h begun 9 accordance ) subp>agraph 7,a74 7ii7 ,exception only = eligible designat$ b5efici>ies ,subp>agraph 7,b77iii7 %all apply only 9 ! case ( an eligible designat$ b5efici>y4 7iii7 ,rules ^u dea? ( eligible designat$ b5efici>y ,if an eligible designat$ b5efici>y dies be=e ! portion ( ! employee's int]e/ to :i* ?is subp>agraph applies is entirely di/ribut$1 ! exception "u clause 7iii7 %all n apply to any b5efici>y ( su* eligible designat$ b5efici>y & ! rema9d] ( su* portion %all be di/ribut$ )9 #aj ye>s aft] ! dea? ( su* eligible designat$ b5efici>y4 7iv7 ,application to c]ta9 eligible retirem5t plans ,= purposes ( apply+ ! provisions ( ?is subp>agraph 9 det]m9+ am\nts requir$ to be di/ribut$ pursuant to ?is p>agraph1 all eligible retirem5t plans 7z def9$ 9 section #djb7;c77#h77;,b71 o!r ?an a def9$ b5efit plan describ$ 9 clause 7iv7 or 7v7 !re( or a qualifi$ tru/ :i* is a "p ( a def9$ b5efit plan7 %all be treat$ z a def9$ contribution plan4 4 7#b7 ,def9ition ( eligible designat$ b5efici>y ,section #dja7;a77#i77;,e7 ( su* ,code is am5d$ to read z foll[s3 7,e7 ,def9itions & rules relat+ to designat$ b5efici>y ,= purposes ( ?is p>agraph-- 7i7 ,designat$ b5efici>y ,! t]m designat$ b5efici>y means any individual designat$ z a b5efici>y by ! employee4 7ii7 ,eligible designat$ b5efici>y ,! t]m eligible designat$ b5efici>y means1 ) respect to any employee1 any designat$ b5efici>y :o is-- 7,i7 ! surviv+ sp\se ( ! employee1 7,,ii7 subject to clause 7iii71 a *ild ( ! employee :o has n rea*$ majority 7)9 ! mean+ ( subp>agraph 7,f771 7,,iii7 disabl$ 7)9 ! mean+ ( section #gb7m77#g771 7,,iv7 a *ronically ill individual 7)9 ! mean+ ( section #ggjb;,b7c77#b71 except t ! requirem5ts ( subp>agraph 7,a77i7 !re( %all only be treat$ z met if !re is a c]tification t1 z ( su* date1 ! p]iod ( inability describ$ 9 su* subp>agraph ) respect to ! individual is an indef9ite "o :i* is reasonably expect$ to be l5g?y 9 nature71 or 7,v7 an individual n describ$ 9 any ( ! prec$+ subclauses :o is n m ?an #aj ye>s y\ng] ?an ! employee4 7iii7 ,special rule = *ildr5 ,subject to subp>agraph 7,f71 an individual describ$ 9 clause 7ii77,,ii7 %all cease to be an eligible designat$ b5efici>y z ( ! date ! individual rea*es majority & any rema9d] ( ! portion ( ! individual's int]e/ to :i* subp>agraph 7,h77ii7 applies %all be di/ribut$ )9 #aj ye>s aft] su* date4 7iv7 ,"t = det]m9ation ( eligible designat$ b5efici>y ,! det]m9ation ( :e!r a designat$ b5efici>y is an eligible designat$ b5efici>y %all be made z ( ! date ( dea? ( ! employee4 4 7#c7 ,effective dates 7,a7 ,9 g5]al ,except z provid$ 9 ?is p>agraph & p>agraphs 7#d7 & 7#e71 ! am5dm5ts made by ?is subsection %all apply to di/ributions ) respect to employees :o die aft] ,decemb] #ca1 #bjai4 7,b7 ,collective b>ga9+ exception ,9 ! case ( a plan ma9ta9$ pursuant to #a or m collective b>ga9+ agreem5ts betwe5 employee repres5tatives & #a or m employ]s ratifi$ be=e ! date ( enactm5t ( ?is ,act1 ! am5dm5ts made by ?is subsection %all apply to di/ributions ) respect to employees :o die 9 cal5d> ye>s beg9n+ aft] ! e>li] (-- 7i7 ! lat] (-- 7,i7 ! date on :i* ! la/ ( su* collective b>ga9+ agreem5ts t]m9ates 7det]m9$ )\t reg>d to any ext5sion !re( agre$ to on or aft] ! date ( ! enactm5t ( ?is ,act71 or 7,,ii7 ,decemb] #ca1 #bjai1 or 7ii7 ,decemb] #ca1 #bjba4 ,= purposes ( clause 7i77,i71 any plan am5dm5t made pursuant to a collective b>ga9+ agreem5t relat+ to ! plan :i* am5ds ! plan solely to con=m to any requirem5t add$ by ?is section %all n be treat$ z a t]m9ation ( su* collective b>ga9+ agreem5t4 7,c7 ,gov]nm5tal plans ,9 ! case ( a gov]nm5tal plan 7z def9$ 9 section #dad7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 subp>agraph 7,a7 %all be appli$ by sub/itut+ ,decemb] #ca1 #bjba = ,decemb] #ca1 #bjai4 7#d7 ,exception = c]ta9 exi/+ annuity contracts 7,a7 ,9 g5]al ,! am5dm5ts made by ?is subsection %all n apply to a qualifi$ annuity :i* is a b9d+ annuity contract 9 effect on ! date ( enactm5t ( ?is ,act & at all times !reaft]4 7,b7 ,qualifi$ annuity ,= purposes ( ?is p>agraph1 ! t]m qualifi$ annuity means1 ) respect to an employee1 an annuity-- 7i7 :i* is a comm]cial annuity 7z def9$ 9 section #cdje7;e77#f7 ( ! ,int]nal ,rev5ue ,code ( #aihf72 7ii7 "u :i* ! annuity paym5ts are made ov] ! life ( ! employee or ov] ! jo9t lives ( su* employee & a designat$ b5efici>y 7or ov] a p]iod n ext5d+ beyond ! life expectancy ( su* employee or ! jo9t life expectancy ( su* employee & a designat$ b5efici>y7 9 accordance ) ! regulations describ$ 9 section #dja7;a77#i77;,a77ii7 ( su* ,code 7z 9 effect be=e su* am5dm5ts7 & :i* meets ! o!r requirem5ts ( section #dja7;a77#i7 ( su* ,code 7z s 9 effect7 ) respect to su* paym5ts2 & 7iii7 ) respect to :i*-- 7,i7 annuity paym5ts to ! employee h begun be=e ! date ( enactm5t ( ?is ,act1 & ! employee has made an irrevocable election be=e su* date z to ! me?od & am\nt ( ! annuity paym5ts to ! employee or any designat$ b5efici>ies2 or 7,,ii7 if subclause 7,i7 does n apply1 ! employee has made an irrevocable election be=e ! date ( enactm5t ( ?is ,act z to ! me?od & am\nt ( ! annuity paym5ts to ! employee or any designat$ b5efici>ies4 7#e7 ,exception = c]ta9 b5efici>ies 7,a7 ,9 g5]al ,if an employee dies be=e ! effective date1 !n1 9 apply+ ! am5dm5ts made by ?is subsection to su* employee's designat$ b5efici>y :o dies aft] su* date-- 7i7 su* am5dm5ts %all apply to any b5efici>y ( su* designat$ b5efici>y2 & 7ii7 ! designat$ b5efici>y %all be treat$ z an eligible designat$ b5efici>y = purposes ( apply+ section #dja7;a77#i77;,h77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect aft] su* am5dm5ts74 7,b7 ,effective date ,= purposes ( ?is p>agraph1 ! t]m effective date means ! fir/ day ( ! fir/ cal5d> ye> to :i* ! am5dm5ts made by ?is subsection apply to a plan ) respect to employees dy+ on or aft] su* date4 7b7 ,provisions relat+ to plan am5dm5ts 7#a7 ,9 g5]al ,if ?is subsection applies to any plan am5dm5t-- 7,a7 su* plan %all be treat$ z be+ op]at$ 9 accordance ) ! t]ms ( ! plan dur+ ! p]iod describ$ 9 p>agraph 7#b77;,b77i72 & 7,b7 except z provid$ by ! ,secret>y ( ! ,treasury1 su* plan %all n fail to meet ! requirem5ts ( section #daa7;d77#f7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bjd7;g7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd by reason ( su* am5dm5t4 7#b7 ,am5dm5ts to :i* subsection applies 7,a7 ,9 g5]al ,?is subsection %all apply to any am5dm5t to any plan or :i* is made-- 7i7 pursuant to any am5dm5t made by ?is section or pursuant to any regulation issu$ by ! ,secret>y ( ! ,treasury "u ?is section or su* am5dm5ts2 & 7ii7 on or be=e ! la/ day ( ! fir/ plan ye> beg9n+ aft] ,decemb] #ca1 #bjba1 or su* lat] date z ! ,secret>y ( ! ,treasury may prescribe4 ,9 ! case ( a gov]nm5tal or collectively b>ga9$ plan to :i* subp>agraph 7,b7 or 7,c7 ( subsection 7a77#d7 applies1 clause 7ii7 %all be appli$ by sub/itut+ ! date :i* is #b ye>s aft] ! date o!rwise appli$ "u su* clause4 7,b7 ,conditions ,?is subsection %all n apply to any am5dm5t unless-- 7i7 dur+ ! p]iod-- 7,i7 beg9n+ on ! date ! legislative or regulatory am5dm5t describ$ 9 p>agraph 7#a77;,a7 takes effect 7or 9 ! case ( a plan am5dm5t n requir$ by su* legislative or regulatory am5dm5t1 ! effective date specifi$ by ! plan72 & 7,,ii7 end+ on ! date describ$ 9 subp>agraph 7,a77ii7 7or1 if e>li]1 ! date ! plan am5dm5t is adopt$71 ! plan is op]at$ z if su* plan am5dm5t 7 9 effect2 & 7ii7 su* plan am5dm5t applies retroactively = su* p]iod4 #djb4 ,increase 9 p5alty = failure to file 7a7 ,9 g5]al ,! second s5t5ce ( subsection 7a7 ( section #ffea ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #bje & ins]t+ #djj4 7b7 ,inflation adju/m5t ,section #ffea7;j77#a7 ( su* ,code is am5d$ by /rik+ #bje & ins]t+ #djj4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to returns ! due date = :i* 7includ+ ext5sions7 is aft] ,decemb] #ca1 #bjai4 #djc4 ,increas$ p5alties = failure to file retirem5t plan returns 7a7 ,9 g5]al ,subsection 7e7 ( section #ffeb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #be & ins]t+ #bej2 & 7#b7 by /rik+ #ae1jjj & ins]t+ #aej1jjj4 7b7 ,annual regi/ration /atem5t & notification ( *anges ,subsection 7d7 ( section #ffeb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #a bo? places x appe>s 9 p>agraphs 7#a7 & 7#b7 & ins]t+ #aj2 7#b7 by /rik+ #e1jjj 9 p>agraph 7#a7 & ins]t+ #ej1jjj2 & 7#c7 by /rik+ #a1jjj 9 p>agraph 7#b7 & ins]t+ #aj1jjj4 7c7 ,failure ,to provide notice ,subsection 7h7 ( section #ffeb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ #aj & ins]t+ #ajj2 & 7#b7 by /rik+ #e1jjj & ins]t+ #ej1jjj4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to returns1 /atem5ts1 & notifications requir$ to be fil$1 & notices requir$ to be provid$1 aft] ,decemb] #ca1 #bjai4 #djd4 ,increase in=mation %>+ to adm9i/] excise taxes 7a7 ,9 g5]al ,section #fajc7o7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#c7 ,taxes impos$ by section #ddha ,returns & return in=mation ) respect to taxes impos$ by section #ddha %all be op5 to inspection by or disclosure to (fic]s & employees ( ,unit$ ,/ates ,cu/oms & ,bord] ,protection ( ! ,dep>tm5t ( ,homel& ,security ^: (ficial duties require su* inspection or disclosure = purposes ( adm9i/]+ su* section4 4 7b7 ,con=m+ am5dm5ts ,p>agraph 7#d7 ( section #fajc7p7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or 7o77#a77;,a7 ea* place x appe>s & ins]t+ 1 7o77#a77;,a71 or 7o77#c74 ,v ,tax ,relief ,= ,c]ta9 ,*ildr5 #eja4 ,modification ( rules relat+ to ! taxation ( une>n$ income ( c]ta9 *ildr5 7a7 ,9 g5]al ,section #a7;j7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ p>agraph 7#d74 7b7 ,coord9ation ) alt]native m9imum tax ,section #ee7;d77#d77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( clause 7i77,,ii71 by /rik+ ! p]iod at ! end ( clause 7ii77,,iii7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7iii7 subsection 7j7 ( section #ei %all n apply4 4 7c7 ,effective date 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is subsection1 ! am5dm5t made by subsection 7a7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjah4 7#b7 ,coord9ation ) alt]native m9imum tax ,! am5dm5t made by subsection 7b7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 7#c7 ,elective retroactive application ,9 ! case ( a taxpay] :o elects ! application ( ?is p>agraph 7at su* "t & 9 su* mann] z ! ,secret>y ( ! ,treasury 7or ! ,secret>y's designee7 may provide71 ! am5dm5t made by subsection 7a7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjag4 ,pass$ ! ,h\se ( ,repres5tatives ,may #bc1 #bjai4;,*]yl ,l4 ,johnson1,cl]k4